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PUBLISHED WITH THE NEW YORK TIMES AND THE WASHINGTON POST 
Paris, Wednesday, August 31. 1994 




With Prospects for Talks 

Sinn Fein Urges UJL Response, Saying 
‘ Essential Ingredients’ for Peace Exist 


J ''_ J 

•■-* 3 ; 


By John Damton 

Hew York Tina Santa 

LONDON — Expectations mounted 
Tuesday that the Irish Republican Anny 
was poised to announce a cease-fire in a 
dramatic .move leading to peace talks in 
the 25-year conflict m Northern Ireland. 

The expectations were fueled by events 
in recent days, culminating in hopeful 
statements by Gerry Adams, the head of 
Sinn Fein, the IRA's political wing. 

Expectations that a truce was about to 
be declared were boosted with news that 
Joe rahfll, 74, a founder of . the Irish Re- 
publican Army, had arrived in New York. 
The State Department said Mr. Cahill had 
received a single-entry visa. Sinn Fan re- 
portedly requested the visa waiver so he 
could enter the country as a' spokesman for 
the movement and-so he could encourage 
its U.S. supporters to back an expected 
cease-fire. : 

In a joint statement Sunday night with 
John Hume, head of Ulster’s main nation- 
alist party and a man who has been press- 
ing for peace talks for 16 months^ Mr. 
A dams said that the “essential ingredi- 
ents” for peace were at hand. He caned on 
the British government to respond favor- 
ably to any move by the IRA 

Mr. Adams indicated Monday that Ire 
had recommended to the IRA leadership 


that it move toward a peaceful settlement 
and that he expected a “speedy response.” 

He said: “The potential now exists to 
move the situation toward a democratic 
and peaceful settlement. I am satisfied that 
Irish nationalism, if properly mobilized 
and focused at home and abroad, now has 
sufficient political confidence, weight and 
support" to bring about the changes which 
are essential to a just and lasting peace ” 

“This is the considered position 1 put to 
the IRA,” be added. 

Analysts who have followed the IRA for 
a decade or more said it appeared that it 
was on the brink of a fateful move to end 
its 25^year campaign to expel the British 
from Ulster by force and rely instead on 
political developments to achieve its ulti- 
mate objective of union with the Irish 
Republic to the south. 

Sectarian violence began when Roman 
Catholics, thc minority In the Protestant- 
dominated North, demanded full civil 
rights and an end to persecution. With 
Protestants and Catholics fighting pitched 
street battles, British troops enteral Aug. 
14, 1969, and rapidly became embroiled in 
the conflict themselves. 

Of the North’s 1.6 million people. 37 
percent are Protestant and 43 percent 

See ULST ER, Page 6 






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** ' ***'* 

A child playing Tuesday against a wall with a message in northern Belfast, scene of more than 100 fallings in 25 years. 


Vjr By Lawrence Malian 

. International Herald Tribune ■ - 

NEW YORK — Lockheed Con>. and Martin Mar- 

. ietta Corp. said Tuesday, in explaining the strategy 

behind their $11 biflion merger, that they were form- 
ing America's largest defense company to try to cut ; 
costs in a shrinking U.S. market and to compete more 
__ vigorously against state-subsidized competitors 
abroad. - 

The companies are the second- and ihird-largest 
-American weapons makers, with combined sales of 
- ■ S22 .6 billion lr&t year. Just Over half of that, or 511.6 
: -• : billion, represented prime Pentagon contracts. 


IV '•That would put them well -ahead of . McDonnell 
Douglas Corp.. which was fee prune Pentagonccin- 


: U.S. Will Offer 
To Relax Rules 
On Cuban Visas 


By Steven Greenhouse . 

New York Tima Service ' 

. WASHINGTON — Tbe Cfimon ad- 
” ministration plans to ask tbe Cuban goy- 
' eminent to halt the exodusof refugees in 
; return for an offer by the United States to 
; relax its immigration rules and grant resi- 
dency visas to more than 20,000 Cubans a- 
year. 

Over tbe last year, the United Slates 
granted residence visas to only 2,700 Cu- 
•* bans, causing President Fidel Castro to 
complain that tins was far below the legal 
ceiling of 27,845 Cubans the administra- 
tion was authorized to admit. 

Last week, Mr. Castro asserted that the 
failure to grant more visas to Cubans had 
helped torch off themass exodus of people 
aboard rickety rafts and boats. 

On Tuesday, with clear weather in the 
Straits of Florida, the influx of Cuban 
infters trying -to reach the United States 
rffce sharply. The Coast Guard said the 
number of Cubans intercepted by Coast 
Guard ships bad risen to 731 by 2 P.M. 
Reports from Cuba said dozens more rafts 
had bear seen setting out from the nation’s 
a - beaches. 

The new administration offer was being 
. . prepared in advance of talks scheduled for 
Thursday with Cuban diplomats in New 
York aimed at resolving immigration is- 
sues and easing tensions over the refugee 
crisis. 

The administration's plan represents anr 
' other twist is its immigration policy to- - 
ward Cute, this time in the form of bend- 
' ing laws to make it easier for Cubans to 
' enter the country legally. For instance, it 
plans to grant entry to cousins and grand- 
parents of Cuban-Ameocans and .grant 

4 See CUBA, Page 6 


• tractor on $7.54 billion of defense jobs last year, and 
. underscores a trend among American defense con- 
tractors to survive in (he posi-Cold War period by 
consolidating (Page 9). 

V The boards of Lockheed and Martin Marietta have 
- approved the merger, which was announced late 
■"Monday night. 

The companies expect to complete the transaction. 
~ With stockholder approval and Pentagon and anti- 
. trust clearance, by the spring of next year, assuming 
Tio corporate raider or competitor will manage before 
...then to raise the billions of dollars needed to picL off 
. ; either company with a hostile bid for its stock. 

: Under terms of the deal, tbe companies said, Lock- 


. heed shareholders would get L63 stores of slock in 
_Lockheed Marlin, thr. proposed nc* ji toe 


company, for each Lockheed share held, and Martin 
Marietta holders would gel one share for each share 
held. 

The new company would be roughly equal in size 
to Boeing Corp., America’s largest exporter, and to 
United Technologies Corp., a principal competitor. It 
hopes to cut costs by sharing overhead expense* and 
research and production facilities, among other mea- 
sures. 

Of the combined companies* 170,000 jobs. 20,001; 
come from exports, Mr. Augustine said, “and uv 
propose to save them by competing abroad.” 

Lockheed's strength is in fighter planes — the F- 16 
ani F-117A Stealth — and Martin- Marietta's is in 
r^’«cc vehicles such the Tins missile, js well a* 
hii ttfi’huotogy avionics and. flight control. 


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erase 


Lockheed tried to get into the missile field by- 
linking up with the makers of Russia’s Proton rockei. 
and that deal is still pending, although strategic 
direction of the combined company will probably 
pass to Martin Marietta. Lockheed' is to close its 
headquarters in the Los Angeles area and merge that 
operation into Martin Marietta's campus in Bethes- 
da, Maryland, just outside the Washington Beltway. 

The Pentagon now supplies only about 60 percent 
of Martin Marietta’s revenue, down from 80 percent 
oxer the Iasi four years. But the merged company still 
would depend heavily on military contracts and will 
be seeking to diversify further into high-technology 
chiton applications or defense technology, ;n uresis 

See MERGER, Page 6 




Kiosk 


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BUDAPEST (Reuters) — Hungarian 
police seized two kilograms of radioac- 
tive material thought to be uranium fuel 
rods from Russia and arrested two Hun- 
garians trying to sell them, the MT1 news 
3gency reponed Tuesday. 

Colonel LaszloTonhauser. head of the 
national police's organized crime unit, 
told the agency that the two unnamed 
suspects were arrested Monday in Buda- 
pest as they sought to sell the material for 
$40,000 per kilogram. 

Police officials could not be reached 
immediately to confirm the report, which 
said the two had been trailed outside 
Hungary before the arrests. 








Ffhio Domr ' Xgenre Ftanct-Pic- w 


THIS IS THE ARMY — Recruits in the Bosnian Anny wearing camouflage as they tmdergo base training in 
Sarajevo. Meanwhile, continued ethnic cleansing still drives Muslims out of Serbian areas of Bosnia. Page 2. 


Crossword 

Weather 


Page 7. 
Page 17. 
Page 18. 


Japan Will Give $1 Billion for War’s 6 Comfort Women ’ 


By Steven Brull 

ImematwnaJ Herald Tribune 

TOKYO — Hoping to silence criticism 
that Japan has yet to atone fully for its 
World War II aggression, Tokyo will an- 
nounce a. 10-year. $1 billion program 
Wednesday, that will provide symbolic 
compensation for women used as “sexual 
slaves” by Japanese soldiers. 

' Prime Minister Tomiichi Murayama. 
who returned Tuesday from a tour of 
Southeast Asian capitals, will announce 
the program, which will center op “com- 
fort women” from Korea, the Philippines 


and other countries who, historians say. 
numbered as many as 200,000. The pro- 
gram will also refer to Taiwanese con- 
scripts whose savings were confiscated and 
South Korean laborers who were ma- 
rooned on Sakhalin Island after the war. 

The program, which follows years of 
increasingly strident demands from na- 
tions in Asa as well as England and Hol- 
land, will mark a major reversal in Japan's 
position. 

For years, the conservative Liberal 
Democratic Party maintained that the is- 
sue of wartime compensation had been 
completely settled by the 1951 San Fran- 


cisco peace treaty. The government feared 
that paying additional reparations would 
open a floodgate of new demands. 

But with the 50th anniversary of the end 
of World War n approaching next year, 
and Japan increasingly seeing its economic 
future linked to growth in Asia. Tokyo is 
making an effort to put the issue to rest. 

The money will pay for the construction 
and operation of vocational centers for 
women in several Asian countries, as well 
as for additional research on World War 
II. Mr. Murayama may also announce a 
separate plan to set up a S1Q0 million, 
privately financed endowment that would 


make payments directly to victims, Japa- 
nese news organizations reported. The 
grants would be classified as “gifts of 
atonement,” not compensation for sexual 
slavery. 

Japan's duel" cabinet secretary, Kozo 
Igarashi said last week that Japan had 
done virtually nothing, compared with 
Germany, in compensating individual vic- 
tims of its wartime aggression. 

But critics have already attacked the 
program as another attempt by Tokyo to 
avoid fully facing its responsibility. Al- 

See SLAVES, Page 6 


No 34.681 

China Vows 
To Resume 
A Dialogue 
On Rights 

U,S. Commerce Chief 
i Exhilarated ? by Results 
Of Business Campaign 

By Steven Mufson 

Washington Past Srmce 

BEIJING — Buoyed by China’s pledge 
to resume talks with the United States over 
its human-rights policy, the LLS. com- 
merce secretary, Ronald H. Brown, de- 
clared his ‘‘commercial diplomacy*’ in Chi- 
na both a political and business success on 
Tuesday. 

Mr. Brown said China’s leaders had 
promised that next month they would re- 
vive a human-rights "dialogue,'' which col- 
lapsed in February and had not been re- 
sumed despite President Bill Clinton’s 
derision in May to sever the link between 
China's human-rights policies and its pref- 
erential trading status. 

In addition, Mr. Brown played the role 
of rainmaker for U.S. companies. He at- 
tended signing ceremonies for contracts 
with U.S.-based companies worth nearly 
$5 billion, for which a little more than S2 
billion worth of work would be done in the 
United States. 

Mr. Brown spent much of his visit lob- 
bying Chinese officials to help U.S. com- 
panies win other contracts on everything 
from auto plants to power plants to civil 
aviation systems. 

Wrapping up two-and-a-half days in 
Beijing, Mr. Brown said he was “exhilarat- 
ed” by the Chinese leadership's response 
both to his aggressive push for U.S. com- 
panies and to his low-key approach to toe 
rights issues that have dogged U.S. rela- 
tions with China since the 1 989 crackdown 
on the democracy movement. 

Though criticized for overemphasizing 
his role as promoter for U.S. companies 
and for giving short shrift to human rights 
concerns, Mr. Brown asserted that his 
strategy had been vindicated. 

He has raised U.S. concerns “in ways 
that allow us to have some chance of suc- 
cess at achieving our goals," he said in an 
interview before Hying to Shanghai, add- 
ing: “I haven't tried to bludgeon them 
about iL 1 haven’t approached them with 
arrogance, but with concern, deep con- 
cern." 

Nonetheless, it remains unclear whether 
a renewed “dialogue" over human rights 
will actually lead to any change in China's 
human rights policies. 

China's concession to Mr. Brown was 
modest. After refusing for months to even 
meet with toe assistant secretary of state 
for human rights, John Shattuck, China 
has agreed to hold talks on rights when the 
deputy prime minister and foreign minis- 
ter, Qian Qichen, goes to toe United States 
in September for toe UN General Assem- 
bly. 

Far from loosening up its treatment of 
dissidents, China this week tightened sur- 
veillance of government critics to make 
sure they did not attempt to use Mr. 
Brown’s visit to gain attention. Moreover, 
several dissidents such as Wei Jingsheng, 
who were arrested around toe time of Sec- 
retary of Slate Warren M. Christopher's 
visit in March and in toe weeks before toe 
fifth anniversary of the 1989 crackdown, 
remain in jail. 

Mr. Brown said he raised several specific 
cases of human rights problems, but would 
not elaborate. 

The contract sagnings on Tuesday in- 
cluded a $1 billion contract for New Or- 
leans-based Entergy Corp. to upgrade a 
power plant: a $2.2 billion contract for 
Tbe Wing Group to build a liquefied natu- 
ral gas turbine; and a $1.5 billion contract 
with AES China Generating Co., a joint 
venture with U.S.-based AES. to upgrade 
the Yangcbeng power plant. 

TRW Inc. unveiled an agreement with a 
Chinese partner to provide toe govern- 
ment-run Beijing Cable TV Network with 
a million descrambler units to deliver cable 
television to households in China. TRW 
and Sum an Group Ltd. will manufacture 
the units in China. And Sprint announced 
it will expand services in China. 

The only cloud that hung over the d3y 
was China's insistence that it gain early 
admission to the General Agreement on 
Tariffs and Trade. Mr. Brown repeatedly 
said that toe United States supported Chi- 
na’s quest to join GATT but that further 
economic reforms would be required be- 
fore China met GATT guidelines for inter- 
national trade. 


up^f -jgf Up 

18.45 0.12% 

3917.36 m 117.72 

‘ ' ■■■■ — — v.„$ 

Trie Dollar ’ 

NgwYwk. • TuflS-CtoW pt9*) 

PM 1.5765 

Pound - 1.534 

Yen 95.62 

FF 5.405 ! 


Newsstand Prices 

Andorra 9.00 FF Luxembourg 60 L Fr 

Antilles — 11.20 FF Morocco 12 Dh 

Cameroon.,1 400CFA Qatar .8.00 Rials 

Egypt-— ~£.P. 5000 Reunion ....11 .20 FF 

France 9.00 FF Saudi Arabia.. 9.00 R. 

Gabon. — :966CFA Senegal 960 CF A 

Greece J00 pr. Soom 200 PTAS 

»ialv -WOffLire Tunisia .... 1.000 Din 

Ivory Coast .1 .120 CpA Turkey ..T.L. 35,000 

Jordan — 1 JO U.A.E 8.50 Dirh 

Lebanon ..USS130 U.S. Mil. {Eur.JS1.1D 


Fraud Does a Thriving Business 
As little Else Moves in Nigeria 

ex chang e earnings — and agriculture. Al- 
■ By Cindy Shiner though the Justice Ministry has no count 

Washington rest Soviet pf arrests or convictions for fraud, officials 

. LAGOS — . While commercial activity j M0C d a wanted list of 1 .200 suspects, 

hare is suffering from politically inspired Nobody knows how many people have 
strikes* one industry still does a booming defrauded. But diplomats, justice of- 

bosiness -- fraud. fidals in both the United States and Nige- 

Organized crime networks in Nigeria are ^a, and business people who frequent l^i- 
bilkingforejgneis of millions of dollars gos sa id the scams were a growing 
annually in fraudulent business trance- problem. , . 

tions reflectina the corruption that has The scams are typically known as ad- 
^d£»grf to oil. vaaced-feo fraud- or “41 iV* after the Nige- 
. rich nation? Spuiation abroad. rian cnmmri code enacted to prosecute 

y, pciimates that such cases. Perpetrators use fax machines 

thini-laijsosl or mail to saidupto 50,000 letters annual- 

iSSEI&'SaSjSSSSS See FRAUD, Page 6 


2 Young Africans and an English Ghost 


By Rob Hughes 

International Herald Tribune 

LONDON — Damp mists hang over a 
canal in Leeds, a gray industrial north 
English dty. Two young men. gifted and 
black and newcomers to Britain, shiver, 
draw up their collars, and scarcely notice 
a lean, aging, homeless individual. 

Phil Matin ga and Lucas Radebe. soc- 
cer players from Soweto, may unknow- 
ingly be passing their own history by. It 
is not certain — for toe drifter is gone as 
wispily as he dropped out of public life 
— but this older man might easily be 
Albert Johanneson. 

He is somewhere out there, an ex- 
sportsman of no fixed abode who is 
lot own to wander disused wharfs in 


Leeds. Upwardly mobile sporting re- 
cruits are, at best, hazy about history and 
seldom curious about passers-by. 

So why should Johanneson. also a 
black man, mean anything to Matin gn 
and Radebe? Because they happen to be 
treading uncannily dose to his imprints. 

Marin ga, especially. He burst into 
English soccer on toe weekend, a swift, 
slender frontrunner with an instinctive 
eye for goal. Johanneson was that in toe 
1960s; before toe newcomers were born 
he arrived from Johannesburg, wore the 
white of Leeds United 194 times, scored 
67 goals, and appeared in the 1965 FA 
Cup Final 

But in toe end. Our Albert, as every- 
one knew him. could not conquer the 


sensitivity that apartheid engrained in 
him. He could not enjoy fame, not con- 
vert fleeting riches into a contented so- 
cial integration. 

He dropped out. His wife Nonna, a 
Jamaican, took their children and left 
him. Johanneson, from time to time, 
wailed on tables at a Chinese restaurant, 
occasionally answered toe calls from his 
former Leeds United teammates, and 
retreated into what he presumably is 
today, a shy. lost 54-year-old who gave 
English fans almost a decade of pleasure 
with his mercurial skills but could never 
quite marry his past in South Africa to 
his opportunities in England. 

Masinga and Radebe. both 25. do not 

See SOCCER, Page 6 


riot - S3?? 







End to One Ordeal 
Of fcthnic Cleansing 

Muslim Woman Driven Out 
Recounts 2 Years Under Serbs 


By Roger Cohen 

New York Tima Service 

SARAJEVO. Bosnia-Herze- 
govina — For more than two 
yean, a Muslim woman named 
Vahida Kami tried to live in 
Serbian-occupied Bosnia. Re- 
cently, her attempt ended. She 
trudged across Sarajevo's 
Bridge of Brotherhood and 
Unity from a Serbian section of 
town into one held by the Mus- 
lim-led government. 

For ibis 22-year-old woman 
from the village of Osave in 
eastern Bosnia, it was the end of 
a long road that led from hope 
through increasing terror to 
eviction, imprisonment, and ul- 
timate dispatch across the lines 
of Europe's new divided city. 

Her story illustrates the hard- 
ening of the Bosnian war as 
desperate efforts by diplomats 
to seek a compromise have 
failed repeatedly. She is one of 
several-hundred Muslims driv- 
en out in recent weeks in what 
United Nations officials de- 
scribe as a new wave of “ethnic 

cl eansing .” 

“I lived for more than two 
years as a loyal citizen of the 
Serbs* republic,” she said. “I 
made no distinction between 
Serbs and Muslims. But now 1 
have changed my opinion. I be- 
lieved the Serbs had a soul. But 
after what has just happened to 
me, I say that there are no 
words to describe them.” 

In Osave. Miss Kartal grew 
up surrounded by Serbian 
neighbors. Her family had a 
small farm and lived comfort- 
ably enough to view departure 
with deep reluctance, although 
they were aware of evictions of 
Muslims early in the war. 

Able to live what she de- 
scribed as a normal life in the 
first year of the war, she ended 
up cowering in hiding before 
increasingly arbitrary intimida- 
tion from Bosnian Serbs. 

“At the beginning, the Serbs 
said they would not force us out 
and simply ordered us to hand 
over our weapons." she said. 
“Then, for a year, we lived quite 
normally." 

There were about 350 people 
in about 70 Muslim homes in 
Osave. In recent months. Miss 
Kartal said, all these families 
have been forced oul “In the 
middle of the day, an armed 
Serb would come and take the 
television, or a refrigerator, or 


Russian Seeks Meeting 
Of 5 Powers on Bosnia 


Agence Francc-Presse 

BERLIN — Foreign Minis- 
ter Andrei V. Kozyrev of Russia 
has called for a new meeting of 
the international contact group 
on Bosnia and has attacked the 
West’s lukewarm reaction to 
Belgrade’s change in attitude to 
the Bosnian Serbs. 

Mr. Kozyrev called for a 
fourth meeting of the five-pow- 
er group at ministerial level to 
“property assess the changes," 
according to an Itar-Tass press 
agency report from Berlin, 
monitored in Moscow. 

Mr. Kozyrev said, on his ar- 
rival in Berlin on Monday, that 
he regretted the “reservations" 
of Russia's partners in the 
group — Britain, France, Ger- 
many and the United Slates. 

Calling for stronger support 


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whatever he chose that had 
some value,” she said. “That 
became normal for us." 

In one of the worst of such 
incidents, she said, a local Serb 
appeared at the house of her 
neighbor and shot him in front 
of his family. 

Her two brothers, Hasib and 
Adem, age 30 and 34. at first 
did agricultural work for the 
Serbs and came home every 
evening. Then they were placed 
in labor units digging trenches 
and spent long periods away 
from home, she said. 

Miss Kartal described watch- 
ing the Muslim houses of Osave 
bong turned into what she 
called “skeletons.” When a 
Muslim family fled, Serb sol- 
diers would appear and take 
anything of value. Then local 
Serbian women came to take 
the floors, windows, toilets, 
boilers, and kitchenware. 

On April 30, she said, three 
Bosnian Serbian soldiers came 
to the Kartals* house and put 
her on a bus to Sarajevo. She 
was taken to Kula prison, kept 
in a small room with 20 other 
women and made to do agricul- 
tural labor and clean toilets. 

“We were not physically mis- 
treated by the Serbs, but dogs 
would not have eaten the food," 
she said. “Every day beans with 
pigs ears and feet and hair float- 
ing in it." 

A few weeks ago, her parents 
and two brothers also arrived in 
Kula prison. They told her that 
□o Muslims were left in Osave. 

Her father remained in Kula, 
but her brothers were removed 
to the Rudo labor camp. Miss 
Kartal, and two days later her 
mother, were allowed to cross 
into the Muslim-controlled part 
of Sarajevo with a han dful of 
other refugees. 

When she arrived on the gov- 
ernment side of the bridge, she 
was greeted by her sister, Mev- 
lada Karovic, whom she had 
not seen since the beginning of 
the war. Mrs. Karovic' s hus- 
band was killed by a Serbian 
mortar shell on the first day of 
the war, April 6, 1992. 

The sisters, their mother and 
Mrs. Karovic’s two children all 
live together in a small ground- 
floor apartment. 

“It is obvious to me now that 
there will never be an agree- 
ment with the Serbs," Miss 
Kartal said. 





■ r.\- • 

Yo*v Lcoracr/Agcacc F race- Prase 

KEEPING WATCH —Israeli soldiers goanfing the Tomb of the Patriarchs in Hebron, intiheWest Bank/Tuesday 
as members of the kadi Parliament visited the site, where an Israeli settlor murdered 29 Muslims in February. 


WORLD BRIEFS 


Sudan to Spurn UN Population Meeting 


Agence France- Prase 

KHARTOUM, Sudan — Sudan will 
boycott the United Nations population 
and development conference next week in 
Cairo and plans to wage a “holy war” 
against its resolutions, government minis- 
ters said. 

The minister for social planning, Ali 
Osmane Mohammed Taha, said at a news 
conference late Monday that Sudan would 
fight for “morality and principles” against 
family-planning recommendations likely 
to be adopted by the conference. 

The army-dominated government, close 


to Islamic fundamentalists, has joined 
Saudi Arabia in boycotting the conference, 
whose draft resolutions on family planning 
and birth control are held to contradict 

M uslim t eaching 

In Tehran, two newspapers denounced 
the conference and urged the government 
not to attend. 

Jomhuri Tstami i a daily close to Islamic 
hard-liners, argued that Iran's participa- 
tion could be taken as a sign that the 
Islamic republic approved of the draft doc- 
ument 

Jahan-e-Islam, representing Islamic rad- 


Frankfurt’s Jews Reopen Synagogue 
Under Cloud of Anti-Semitic Attacks 


for the Belgrade regime in the 
light of its break with the Bosni- 
an Serbs, he distanced Moscow 
from its Western partners, 
which want Belgrade to make 
its pressure on the Bosnian 
Serbs more concrete. 

Mike McCuny, the State De- 
partment spokesman, said 
Tuesday that Washington was 
disappointed by Moscow's 
stance. 

Mr. Kozyrev’s German coun- 
terpart Klaus Kinkel, took the 
same line, saying on television 
that the four Western powers in 
the group would keep up pres- 
sure on Belgrade, regardless of 
Moscow’s disapproval. They 
are insisting that Belgrade allow 
international observers along 
the Serbian-Bosnian border. 

Bosnian Serbian electoral of- 
ficials said Tuesday that prelim- 
inary referendum results 
showed that at least 96 percent 
of Bosnian Serbian voters had 
rejected the contact group's 
peace plan. 

The plan, which reserved 49 
percent of Bosnia for the Serbs 
and 51 percent for the Muslims 
and Croats, was rejected after 
ballots were counted from 62 of 
the 82 municipalities the Bosni- 
an Serbs have included in thdr 
sdf-p rod aimed Serb republic. 


The Associated Press 

BONN — With joy and fore- 
boding, the Jewish community 
of Frankfurt reopened the reno- 
vated Westend synagogue, one 
of Germany’s largest and a 
crowning symbol of Jewish as- 
similation when first built in 
1910. 

The six-year, S-million-mark 
($5-millkm) renovation by the 
architect Henryk Isenberg re- 
stores the brilliant blue, gold 
and turquoise floral columns 
and walls of the synagogue in a 
Cecil B. DeMille-style marriage 
of art deco and Egyptian influ- 
ences. 

The interior was burned by 
Nazi mobs in 1938, and Allied 
bombing left only the outer 
walls. After World War II, the 
synagogue was refurbished in a 
plain style for the shattered 
Jewish community that re- 
mained. 

The new renovation was be- 
gun in 1988, a time when the 
30,000 West German Jews felt 
confident of postwar Germa- 
ny’s grounding in democracy. 


Salomon Korn, an architect 
and adviser on the renovation, 
said in an inaugural speech 
Monday. 

“The outbreak of right-ex- 
tremist violence in the wake of 
German unification raises ques- 
tions about whether we were 
right," be said. 

Mr. Isenberg left the high 
plain windows from the 1950 
refurbishment as symbolic re- 
minders of the Nazi devastation 
and the Jewish community's 
still uncertain standing in Ger- 
man life, Mr. Korn said. 

In March, rightist youths 
burned a synagogue in Ltibeck 
in the first attack of its kind in 
many years. Scores of Jewish 
cemeteries and monuments 
have been vandalized in the 
past three years. 

“Once again, Jews are pain- 
fully reminded that their right 
to exist in Germany is in ques- 
tion,” Mr. Korn said. 

The original 1910 synagogue 
was an expression of the ex- 
traordinary comfort many Jews 
then felt in Germany. 


Secure in their identity as 
“loyal Germans of Jewish 
Faith," Reform Jews built hand- 
some temples whose Middle 
Eastern motifs “symbolized 
their feeling that the new Holy 
Land was Germany," Mr. Korn 
said. 

Westend synagogue burned 
on Kri Stalin adit, Nov. 9, 1938, 
in which Jewish places of wor- 
ship and property around Ger- 
many were trashed and hun- 
dreds of Jews were beaten or 
dragged off to concentration 
camps. 

■ 3 Rightist Youths Jailed 

Three young men were given 
jail terms Tuesday for their part 
in an attack on Africans that 
turned into a battle between 
German youths and foreigners 
in Magdeburg on May 12, 
Agence France-Presse reported. 

Judge Ludwig Fabricius said 
two of the youths lode a direct 
part in a chase of a group of 
black Africans through the 
streets of the East German city 
and all three subsequently 
helped wreck a bar. 


Italians Mock Bossi’s 6 Revok 9 Claim 


Compiled bf Oar Staff From Dispatches 

ROME — The Italian press 
assailed on Tuesday a claim by 
the leader of the separatist 
Northern League, Umberto 
Bossi, that in 1987 he prevented 
300,000 people in the Italian 
Alps from instigating an armed 
uprising against the state. 

The only problem with Mr. 
Bossi’s statement, the newspa- 
pers said, was that there seems 
to be no official trace of the 
“revolt,” which, some commen- 
tators added, was probably 
imagined by the federalist lead- 
er. 

Mr. Bossi spoke Monday eve- 
ning during an impromptu 
press conference as he was sun- 
bathing on a beach in Sardinia. 

Splashed across the front 
page of Tuesday’s La Repubb- 
nca was a cartoon showing Mr. 
Bossi at the beach, up to his 
waist in water, wearing a tank- 
top shirt and armed with a fish- 
net 

“There were 300,000 of them. 


young and strong. Can you 
imagine?” be exclaims in the 
cartoon. 

Hie Milan daily Coniere del- 
la Sera ran a front-page photo 
of Mr. Bossi in a bathing suit 
and tank-top with the caption 
“Bossi strikes again.” 

“Between 1986 and 1987, I 
prevented an armed revolt by 
300,000 people in the valleys of 
the Bergamo Alps,” Mr. Boss 
said. “In that region, people 
didn’t think they could beat 
down the political establish- 
ment and when I would arrive 
in the valleys, I would see peo- 
ple coming toward me, includ- 
ing soldiers, and teffing me: ‘We 
have you in our hearts, and if 
you give us the order, we are 
ready to open fire,’ 

“At the end of 1987, standing 
in the middle of a road in the 
valley, one of the roads where 
you would see trucks going by 
loaded with weapons destined 
for Slovenia, I told the people 


that they should do nothing of 
the sort” 

Authorities in Bergamo said 
they had never been aware of a 
plot to overturn the govern- 
ment 

“Maybe a few hot-headed ac- 
tivists had been spreading no- 
tions of a revolt,” one official 
told the news agency ANSA. 

The Northern League; for- 
merly the Lombard League, 
grew in reaction to public dis- 
content with widespread politi- 
cal corruption. 

During the period mentioned 
by Mr. Bossi, the League was 
supported by no more than 3 
percent of the population in the 
Bergamo valleys. 

Several members of the neo- 
fascist-led National Alliance, 
another coalition partner, 
called on magistrates to open 
an inquiry into die affair. 

But the National Alliance 
leader, Gianfranco Fini, dis- 
missed it 

(AFP, Reuters) 


'Sub’ Noise 
Seal-Made? 


Reuters 

STOCKHOLM — Swe- 
den has probably mistaken 
noises made by marine 
mammals: for submarines 
several times since 1990 
during its controversial 
hunt for suspected Soviet 
or Russian intruders, a for- 
mer naval commahder said 
Tuesday. 

The navy disclosed for 
the first time this summer 
that it had spent weeks 
tracking a sound wave for- 
mation it later concluded 
was caused by animals, 
possibly seals or otters. But 
it has not said whether the 
sounds misled hunts prior 
to this year. 

“This is a sound pattern 
in which we have had great 
confidence in the past, and 
it was noted even when I 
was commanding officer of 
anti-submarine forces,” 
Hakan Neckman said in an 
interview with the daily 
newspaper Svenska Dag- 
bladet 

Mr. Neckman, who was 
in charge of die unit be- 
tween 1990 and 1993, said 
be did not think that , the 
pattern was the only sound 
the Swedes had chased. He 
said he still believed that 
other systems had proved 
that there had been foreign 
intrusions in recent de- 
cades. 

The Swedes have ac- 
cused the former Soviet 
Union and, two years ago, 
Russia, of being responsi- 
ble for the alleged viola- 
tions. 

Moscow has always de- 
nied the charges. 

In 1981. a Soviet Whis- 
ky-class submarine ran 
aground near a top-secret 
naval base at Kariskrona in 
southeastern Sweden. Mos- 
cow blamed a navigational 
error, and the submarine 
was allowed to go after a 
formal protest 


Israel Must Pull Out of All Golan 
For Peace With Syria, Egyptian Says c 

JERUSALEM (A F) — Egypt’s foreign minister said Tuesday 
that Israel would have to withdraw completely from the Golan 



icals, said the meeting was a “plot against 
Islam and should be strongly opposed.” 

■ Soil to Move Meeting Fails 

An Egyptian court threw out on Tues- 
day a suit by prominent Islamis ts demand- 
ing that President Hosni Mubarak move 
the conference out of Egypt, Reuters re- 
ported from Cairo. 

But die three Islamists, saying there was 
unanimous opposition to the conference in 
Egypt and the rest of the Muslim world, 
said they would appeal in time to stop the 
Sept. S conference from opening. 


speed negotiations between Israel and Syria._ , . ■ 

^Foreitm Minister Shimon Peres of Israel said Mr. Moussa s tnp 
“represents a promotion in relations" between the two countries. 
Henoted also the presence of an Egyptian industrial delegation 
that was meeting with Israeli economic leaders. - 

Mr Moussa has been to Israel before but only for daylong 
working sessions over Middle East peace moves. After talks with 
Mr Peres, be visited part of the Yad Vashem Memorial to the 6 
million Jews killed in the Holocaust. 

Swedes Would Pay More, R>11 Says ; 

STOCKHOLM (AP) —Despite its already high taxes, Sweden 
could charge even more if it took the people's advice on preserving 
welfare, according to a poll released Tuesday. * 

The independent EMU-Testologen Institute found that 8 out of 
10 Swedes f avored higher taxes instead of cuts in major welfare 
programs. 

Even a majority of voters who support the center-conservative 
government said they would rather pay higher taxes than accqpi 
more cuts in state-run day care, elderly care or education pro- 
grams, the poll found. The survey of 4,824 people had a margin of 
error of one percentage point 

Vest Pressures India and Pa k ista n 

NEW DELHI (Reuters) — International mediators pressed 
iwHin and Pakistan on Tuesday to renounce their atomic weapons 
programs as Islamabad and New Delhi each expelled one of the 
other’s diplomats. .. 

A meeting in New Delhi of a UA-Ied group of nations seeking 
to stem the spread of missile technology urged India to halt its 
alleged nuclear warfare project Senior officials from the U nited 
States. Britain, Switzerland and Australia told the Indian govern- _ 
ment that New Delhi’s program had increased regional tensions, f 

India on Tuesday ordered a Pakistani diplomat to leave th€ 
country hours after Islamabad accused an Indian envoy of spying 
and told hi™ to depart, the Press Trust of India reported. 

TV Debate on Quebec Called a Draw 

MONTREAL (Reuters) — Quebec leaders have sparred in a 
televised debate over whether the French-speaking province 
should become independent from Canada, but pundits saw no 
dear winn er. 

Premier Daniel Johnson, a Liberal, faced Jacques Parizeau, the 
of Che separatist Parti Qu&bccaas, in a 90-nnnute French- 
law gnflgft debate on Monday night, two weeks ahead of a provin- 
cial election. Mr. Parizean was leading in polls before the debate. 

The highly structured confrontation, which did not allow for 
wide-open exchanges between the two, was seen as a draw. “There , 
was no knock-out punch,” said Daniel Latouche, a political 
analyst “No one really took controL” 

Islamab ad! Israel Was Discourteous’ 

ISLAMABAD, Pakistan (Reuters) — Pakistan, stung by Isra : 
d’s refusal to let Prime Minister Benazir Bhutto visit the Gaza 
Strip without its permission, on Tuesday criticized “discourteous? 
re mar k s by her Israeli counterpart, Yitzhak Rabin. 

“We have noted with regret the unwarranted and discourteous 
remarks of the Israeli prime minister. We do not need lessons iq 
manners from him,” a Foreign Ministry statement said, a day 
after Miss Bhutto scrapped the trip, planned for next Sunday. . 

She would have been the first foreign head of government to 
visit Gaza since it achieved self-rule from Israel in May. The 
diplomatic wrangle over her trip exposed the tensions betweeg 
Israel and the Palestine Liberation Organization on sensitive: 
matters of sovereignty and border control in the newly autono 
mous area. _ ' t ' . ’ . # 

Bodiesof U-S-Drog Agents Foimd 

LIMA (NYT) — The U-S. Drug En fo rce me nt Administration 
said searchers had found the bodies of .five persons who were , 
aboard an anti-drug plane that crashed Saturday in the Upper. 
Huallaga Valley, where most of the world’s cocaine is produced: 

The jet, with two.pilots and three enforcement agents, was on 4 
' routine reconnaissance mission. The Peruvian Air Force found 
the wreckage in the jungle of the Andean foothills Sunday, but ' 
rescuers did not reach the rite until late Monday because of 

tugged terrain and poor weather, UJS. officials here said. •; 

• - • ■■ 

Corrections 

An article in Aug. 22 editions mistakenly identified, in a 


quotation, the 


a Aug. 

burial 


site of General George S. Pattern. He is 


buried in the U.S. Cemetery in Luxembourg. A memorial to the 

.-Avoid. 


World War II general is situated in Sl- 


France. 


An article in Tuesday’s editions about pollution in Europe 
incorrectly referred to Lresd Hartenstdn as “he." In addition, the 
story might have given the impression that she favored “stopgap" 
measures, such as speed limits on the autobahn, to reduce air 
pollution. She does not 


TRAVEL UPDATE 
No Refugees Here, Key West Says ' 

KEY WEST, Florida (AP) — The large numbers of Cuban, 
rafters trying to come to the United States this month are causing - 
many visitors to this resort town to stay away, and they' have 
prompted an advertising campaign reassuring tourists (hat the . 
Florida Keys are still open. . . 

“From Italy, they call me to see if Key West is fiDed 
refugees just like 1980,” during the Marid boatlift, a dive shop 
owner. Franco Piscibdlo, said. NoL only are Cubans not washing 
up on the beaches, there are not enough tourists to suit Mr. 
Fisdbello. “It’s just like a ghost town,” he said.- • ’ 

Seeing vacancies .and cancellations right before the U.S. Labor 
Day holiday this weekend, the Monroe County Tourist Develop* 
ment Council has taken out ads in six Florida newspapers urging 
: tourists to “come see for yourself.” " - '• 

Despite the shooting of an Italian coople, Italy won’t issue sn- 
advisory urging its citizens to exercise caution while visiting 
Florida. There is no need to create an mtenational furor because 
of one incident, Stefano Ronca, spokesman for Italy’s embassy io 
Washington, said. Sergio Russo. 49, and Daniele Ferrante, 47. 
were shot and robbed m Kissimee. The husband and wife will be ' 
released from the hospital soon, officials said. (AP) 

Ariana Airlines of South Korea and Northwest Airfines of thf 
United States have signed a comprehensive marketing-alliance 
agreement covering trans-Padfic routes and beyond. (Aft 




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and His Party — Arrive at a Tactical Crossroads 


By R.W. Apple Jr. 

•. Netr York Times Savia 
WASHINGTON — The youn g 
White House aide was talking last 
weekend about his boss. President Bill 
Clinton, and the leader of tbe Republi- 
cans in- the Senate, Bob Dole of Kan- 
sas, who is also about as dose as bis 
parly comes at the moment to a na- 
tional leader. 

■ “They aren’t really friends, but they 
aren’t exactly enemies, either” he said. 
“More like a couple of panthers, I. 
guess you’d say, , circling each other in a 
clearing in the jungle." 

In recent days, Mr. Dole has won 
one fight with the president and lost 
another. In one of the most fiercely 
qnd relentlessly partisan episodes in a 
long career that has also had important 
moments of bipartisanship, Mr. Dole 
blocked action cm health-care legisla- 
tion long .enough so that most of its 
champions gave up, for tins year at 
least But he misjudged his strength 
badly on the crime Ml, and when .he 
tried to block that, he lost 


Now, Mr. Dole must decide what his 
tactics will be in the next big test 
Should he continue to stonewall on 
health care who* the search for a more 
modest bill resumes next month, as the 
hard-liners in his party are suggesting, 
or should he side with the Republican 
moderates, led by Senator John H. 
Ghafee of Rhode Island? 

. .Or to put the question in its histori- 
cal context stretching back to the 

NEWS ANALYSIS 


Taft-Eisenhower battle of 1952 and 
beyond, should the Republicans se ek 
to define themselves by steadfast op- 
position to the Democratic agenda, or 
should they work with the Democrats 
an some issues and fight them on oth- 
ers? 

- Mr. Dole stands at the intersection 
of those two roads not only because of 
his job but also because of his politics. 
A conservative of the old Midwestern 
breed, he has nevertheless supported 
some Democratic civil rights mea- 


sures, he abhorred Reaganomics and 
he has sometimes seemed ready to 
back a new system of health cam, 
though not one that involves manda- 
tory contributions by employers. 

How he jumps next will help to 
shape not only the outcome of the 
health-care struggle but also the No- 
vember midterm elections, in which his 
party stands a reasonable hope of re- 
gaining control of the Senate (which 
would make him the majority leader) 
and an outside chance of taking con- 
trol of ihe House of Representatives as 
well. 

His decision could also have an im- 
pact on his own electoral fate. His 
party’s vice presidential candidate in 
1976, he sought the presidential nomi- 
nation unsuccessfully in 1980 and 
1988, losing the New Ham pshir e pri- 
mary and all his momentum in 1988 
just when be seemed on the verge of 

w inning 

With the retirement this year of 
Representative Robert H. Michel of 


Illinois, Mr. Dole will soon be the 
senior Republican on Capitol Hill. He 
has been there for 34 years. But he still 
longs for the presidency, and many 
friends think he will run again in 1996. 

Mr. Dole said two years ago that “a 
little gridlock might be good from time 
to time." But when voters are com- 
plaining about mindless squabbling in 
Washington, it is obviously not good 
politics all the time. 

According to a recent Time-CNN 
poll, 48 percent of the public sees the 
Republicans on the Hul as the main 
authors of stalemate, while only 32 
percent mostly blames the president 

On the other hand, Mr. Dole cannot 
simply allow Mr. Clinton to reap all 
the credit for legislative initiatives; he 
has to find some way to leave his mark, 
and that of bis party, on public policy. 

Some Republican moderates accuse 
Mr. Dole of hypocrisy in shifting away 
from his support of universal or nearly 
universal health-care coverage. There 
is no doubt that some internal Senate 
politics are involved; the moderates’ 


voice within the Republican confer- 
ence is a feeble one, and no leader can 
stray too far too often from the rightist 
positions favored by a large majority 
of the 44 members. 

Bill Kristoi, who worked for former 
Vice President Dan Quayle in the 
While House and who now runs a 
policy analysis group espousing a hard 
line, said that “the center of gravity in 
the Republican parry has changed." 
Mr. Knstol, who speaks often with Mr. 
Dole, added, “Immediately after the 
1992 election, the majority view was 
that George Bush lost because he 
wasn’t enough like Clinton. Now, most 
Republicans think he wasn’t enough 
like Ronald Reagan. 

“At the moment, appeasement of 
the Democrats is far more disliked in 
the party than obstruction, and Dole 
knows that, of course. He stays major- 
ity leader because he stays in touch. 
You’ll see enough obstruction in him 
to satisfy the majority, enough accom- 
modation to satisfy the others.” 


U.S. Moves Closer 
To Haiti Invasion 

Multinational Force Forming 




ing a 

“Our 

unit 


Raders 

KINGSTON,. Jamaica — 
The United States and Caribbe- 
an nations said Tuesday that 
they were “moving briskly” in 
’the direction of a military inva- 
sion of Haiti and that a.U.SL-led 
force would begin training in 
Puerto “Rico. 

And in New York, Secretary- 
General Butros Butros Ghali 
said the United Nations had 
failed to arrange a last-ditch at- 
tempt to persuade Haiti’s mifi- 
tary rulers to step down peace- 

A statement issued'by senior 
American and Caribbean offi- 
cials in Kingston after a meet 1 
on the Haiti crisis said, 
hir governments are equally 
Ited in their determination to 
talrft all necessary thwmis to ear- 
ly out the Security Council 
mandate to restore the demo- 
cratic process in Haiti." ] 

- “Training is planned to begin 
immediately for.' the multina- . 
tionaT forteT said the U.S. dep- 
uty defensesecretary, John M. 
Deutch. He said it was eroected 
f to take place at the U.S. mili- 
tary base at Roosevelt Roads,. 
Puerto Rfco.-' 7 ■ .v 

The deputy Uii. -secretary of' 
State, &robe Talbott, and offi- 
cials of the Caribbean Commu- 
ie that Haiti's 


iHtary rulers would step aside 
soon and allow the elected pres- 
ident, the Reverend Jean-Bcr- 
-trand Aristide, to return to 
power. But they said if the rul- 
ers did not do so, a multination- 
al force would remove them. 

Senior American officials 
said privately that theU.S.-Ied 
force wa* expected io total 
about 10,000 troops, most of 
them Americans. 

Father Aristide was deposed 
in a coup nearly three years ago 
and now Bve6 in exue in the 
United States. 

Mr. Butros Ghali declined to 
say flatly whether the next step 


was likely to be an invasion, as 


authorized July 31 by a Security 
Council resolution demanding 
the restoration of. Father Aris- 
tide. 

“The group of states who 
have receraedf a mandate to in- 
tervene in Haiti have to take 
their own decision," the secre- 
tary-general said. “It is no more 
in the competence of the United 
Nations, for the time being." 

A special UN envoy, Rolf 
Knutsstin, had sought to per- 
suade Haiti’s mffitirry leader- 
ship to step down and allow the 
restoration of democratic rule, 
but Haitian leaden refused to 
meet directly with into. 

The United States has been 
working for weeks to get troop 
commitments from Caribbean 
and Latin American nations for 
a multinational force that could 
invade Haiti under the Security 
Council resolution. 

The foreign minister of Ja- 
maica, Paul Robertson, said at 
a news conference in Kingston 
with the American officials that 
at least four of the countries in 
Caribbean Community — Ja- 
maica, Barbados, Belize and 
-Trinidad-Tobago •— were com- 
mitted to supplying troops for 
any invasion force and that 
Guyana and the Bahamas were 
considering such a commit- 
ment 

But he said the community's 
total contribution would consti- 
tute only “a light company, ap- 
proximately 266 troops.” 

The statement issued after 
Tuesday’s meeting said Argen- 
tina ana Britain hid also agreed 
to participate in any multina- 
tional epahtion, but a Canadian 
official reiterated at the meeting 
that Ottawa would not take 
part in any invasion of Haiti. 

Pressed by reporters, Mr. 
Talbott and other officials re- 
fused to set an invasion dead- 
line, but Mr. Talbott said Tues- 
day’s agreement to begin 
training was “a watershed." 



Lvnnc Sbdk>/Thr Auocuod Proa 

At Guanthnamo Bay Naval Base in Cuba, a Cuban refugee passes a water bottle through barbed wire for a Marine to fin. 

New Exodus , This One to Guantanamo 

conference m Kin es ton s 


By Gabriel Escobar 

Washington Post Senne 

SANTTAGODE CUBA, Cuba — While 
attention has been focused on the refugee 
crisis in Havana, scores of Cubans have 
been fleeing the southeastern pan of the 
island and apparently heading directly to 
the United States naval base at Guantana- 
mo Bay, 65 kilometers away, according to 
residents here. 

Unlike the chaotic exodus from the capi- 
tal, where thousands of have gone to sea in 
makeshift rafts, residents described a 
much more organized effort involving doz- 
ens of fishing boats, many of which were 
stolen or commandeered from marinas 
here and in surrounding towns. 

Although comparatively small in num- 
bers, the steady migration from this histor- 
ic city — Cuba's second largest and one 
that prides itself on being the cradle of the 
revolution — is a sign that the crisis has 
quietly spread beyond Havana and into 
areas long admired for their co mm it m ent 
to communism and to Fidel Castro in 
particular. 


Indeed, the national silence that has 
greeted the flight from the eastern prov- 
inces is seen by some as a calculated effort 
to lessen a potentially serious moral blow 
to the government. 

“You know why they don’t say any- 
thing?" asked Ulysses Torralba Sanchez, 
an unemployed electrician. “Santiago is 
the heroic city, the city of the revolution. 
Here, the revolution has always been 
strongest." 

It is difficult to assess how many people 
have left from here or other seaside towns 
in the southeast over the last two weeks. 

But the fact that those who have ven- 
tured out have apparently chosen the base 
at Guantanamo as their destination is evi- 
dence that detention camps there are more 
a magnet than a deterrent and (hat the 
base itself, at least for some residents in the 
southeast, is seen as a very viable option. 

Despite heavy security, a minefield and 
other safeguards, concern that Cubans will 
storm Guantanamo by land has been ex- 
pressed by both governments from the 
onset of the crisis. 

Residents, in particular those who live in 


Guantinamo City, say ibe police are now 
restricting entry to the town to people who 
prove they live there. 

With access by land cut off, residents 
said, waterfront areas like El Cangrejito. a 
marina by the bay here, and coastal towns 
like Bacanow, just east of here, became 
major launching areas about two weeks 
ago. 

Residents said the police were constant- 
ly present, inspecting boats, settling dis- 
putes, controlling the crowds and confis- 
cating the identification cards of those 
who were leaving. 

As was the case in Havana, warnings 
from American officials that Cubans faced 
lengthy detention and no chance of mi- 
grating legally were ignored. 

For those who are in favor of the exodus, 
these are the comprehensible acts of des- 
perate men f a ci n g desperate situations. 

And for those who are fervent believers 
in Mr. Castro and the revolution — and 
they are not hard to find here — these are 
the detestable acts of a minority that the 
country is better off without. 


APOLITICAL NOTES A 


Quayle Says He’s Thinking About’ ’96 

WASHINGTON — Former Vice President Dan Quayle 
has denied press repons that he had decided io run for 
president in 1996. but he said he was "thinking about it." 

CNN reported that Mr. Quayle. a former Republican 
senator from Indiana who served as vice president under 
George Bush, decided to run after sales of his book. "Stand- 
ing Firm." were encouraging. 

“Former Vice President Quayle hasn't made any decision 
and won't make any decision until after the November mid- 
term elections." said a Quayle spokeswoman, Ann Hatha- 
way. 

But she said Mr. Quayle. who earned both ridicule and 
praise for his conservative "family values" theme in the 1992 
campaign, had received a lot of encouragement from Repub- 
licans across the country' to run. “so he’s obviously consider- 
ing it." 

A recent Harris poll of 725 Republican and independent 
voters found the Senate minority leader. Bob Dole of Kansas, 
the early leader among potential Republican presidential 
candidates, with 17 percent support. Mr. Quayle was second, 
with 13 percent. < Reuters > 

Worth Says Robb Lacks ‘Moral Force* 

WASHINGTON — Vowing to hound Senator Charles S. 
Robb until Election Day. one of his rivals in the Virginia 
senatorial race. Oliver L. North, has asserted that Mr. Robb 
has a “seriously flawed" character and lacks the "moral 
force" to hold public office. 

Mr. North, appearing at a news conference in Arlington 
with sleeves rolled up and spoiling for a political fight, vowed 
that Mr. Robb was "about to get an education" and for the 
first time referred directly to allegations that Mr. Robb has 
had extramarital sexual relationships. 

Mr. North pointedly noted his fidelity to his wife and 
family, and said he did not have the “kind of character 
problem" that he said has plagued Mr. Robb. 

In some of his most acerbic rhetoric to date, Mr. North, a 
Republican, called his Democratic opponent a "near radical" 
liberal and promised to attack him without let up. 

Mr. North's strongest support comes from among conser- 
vatives and Christian fundamentalists, and his emphasis on 
family values has been a key focus in his campaign. Mr. Robb 
has acknowledged "socializing in situations not appropriate 
for a married man” while he served as governor in the mid- 
1980s. and he has apologized for hurting his wife and family. 

A Robb spokesman. Bert Rohrer, said that Mr. North had 
"taken the low road" by reviving the allegations. Referring to 
Mr. North's admission that he had lied to Congress during 
the Iran-contra affair, Mr. Rohrer said. “Oliver North is in 
no position to question anyone's character." ( H'P) 

Indian Tribe Supports Democratic Parly 

HARTFORD, Connecticut — The Masha n tucket Pequot 
Indian tribe, having earned millions from the gambling 
business at its Foxwoods casino in Connecticut, is investing 
its profits in a new game: politics. 

As the November elections approach. Pequot money is 
flowing across the country in abundant and increasing 
amounts, to Albany. New York, and Hanford as well as to 
Dcs Moines. lowa/und Sacramento. California. 

And virtually all of it is going io Democrats. 


i lust t _ . 

members were expected to cam about S600 million from the 
casino this year — has given SI 00.000 each to the Democratic 
Party organizations in New York and California, and 
S50.000 to the state party committee in Iowa, all at the 
direction of national party leaders. It has pledged S250.000 
for other slate campaigns still to be named, and. over the last 
two years, has become one of the single largest contributors 
to the Democrats' national committee, with total donations 
of S3 15.000. 

Lobbyists and lawyers for the tribe say that Democrats 
have been good to the Pcquots and to American Indians in 
general, and that across a broad spectrum of issues, from 
health care to education, the tribal council believes the 
Clinton administration is on the right track. Local Demo- 
crats helped the tribe gain federal recognition in the 1980s — 
an old debt that can now be repaid — and President Bill 
Clinton held an American Indian summit meeting at the 
White House in April that was viewed by the Pequots as 
symbolically significant. ( N YT I 

Quote/Unquote 

Joe Trippi. a Democratic media consultant, on the death 
penalty as a central theme in political campaigns: "Voters 
understand the death penalty isn’t the end-all or be-all. but it 
says to them. ‘We know where a candidate stands, whose side 
he’ is on.' Are you on the side of the victims or. for lack of a 
better way of putting it, are you an ACLU liberal on the side 
of the criminals?" i L AT) 


Downers of Copters 
Might Face Trials 


.■ By John F. Harris 

, Washingun Post Service 

WASHINGTON — A mili- 
tary review board has recom- 
mended that court-martial pro- 
ceedings be brought against at 
feast four members of the crew 
of an airborne radar plane dial 
was in charge of the sky over 
northern Iraq when two U.S. 
‘Army helicopters were acciden- 
tally shot down by two Air 
Foreejet^araording to Penta- 

„ The legal late of the crew 
-members of the AWACS radar 
plane that played a central role 
in the Aprill4 friendly fire inci- 
dent, in wbfch 26 people were 
killed, now rests with lieuten- 
ant General Stephen B. Croker, 
the commander of the 8th Air 
Force: The review board that he 
appointed advised that the 
lapses of the crew had teen seri- 
ous enough to warrant seeking 
punishment under the military 
justice system; it is up to Gener- 
al Croker to decide whether to 
accept the advice. 

■ A separate review board, un- 
der the authority of Major Gen- 
eral Eugene D. Santareffi, the 
Jcosnmander of the 17th Air 
Fwce, in Germany, will make 
recommendations about what 
action should be taken against 
the two F-15 fighter pilots who 
Sfired the missiles that shot 
down the two army Black 
JHawkS, . . 

• it was a xmsidentification by 
ihe two F-15 pilots — they 
thought they were firing at Iraqi 
helicopters violating a flight 
han J. that was the immediate 
cause of the tragedy. But a non- 



judicaai inquiry into the acci- 
dent conduc te d this spring by 
the military authorities also fo- 
cused a sharp light mi blunders 
by the AWACS crew. 

The crew did not monitor the 
course of the army helicopters 
as they visited Kurdish settle- 
ments in northern Iraq, and it 
did not alert the F-15 pilots 
before they fired, that the heli- 

— — *. ■ > were 

Fames 

e said 

at a news briefing last month- 

At the time that General An- 
drus issued his findings. De- 
fense Secretary William J. Perry 
said that if the AWACS had 
been operating properly, the ac- 
cident would not - have hap- 
pened. 

The review-board; appointed 
by General Croker apparently 
a^r^ It recOTjmended courts- 
martial against four crew mem- 
bers, and it has not yet decided 
wfaai to. do iu a fifth case, ac- 
cording to a Pentagon source. 

If General Croker agrees, he 
will initiate an Artide 32 inves- 
tigation agamst the crewmem- 
b ers, w hich is the cqmvaleni of 
a^and jury hrthect vilian judi- 


One in 2 Children Does Not Live in ‘Traditional Nuclear Family’ 


By Barbara Vobqjda 

Washington Posr Service 
WASHINGTON — One out of 
two American children lives in some- 
thing other than what the Census 
Bureau defines as the “traditional 
nuclear family”: a married couple 
living with their biological children 
and no one else. 

The array of arrangements that 
have come to represent today’s fam- 
ilies include multigen erational 
homes where grandmother helps 


raise the children, “blended” families 
of stepparents and half siblings and 
households where children live with 
their unmarried parents. 

“Most of us would think of the 
typical family as a married couple 
with their biological children,” said 
Stacy Furukawa, a Census Bureau 
demographer and author of the re- 
port released Monday. “We were just 
very surprised to see that situation is 
experienced by only half of Ameri- 
can children.” 


Census officials stressed that they 
were not trying to make judgments 
about the relative worth of family 
arrangements, but simply describing 
the wide and increasing diversity in 
children’s living circumstances. 

Omar Rahman, a demographer 
with the Rand Corp., a California- 
based think tank, said there was no 
dear evidence that children living in 
the traditional nudear families nec- 
essarily fared better than those in 
other circumstances. 


“If the presumption is that that’s 
the optimum living arrangement, the 
jury is still out,” he said. “There is a 
lot of diversity, and it's not at all 
dear that it’s bad.” 

The findings reflected large differ- 
ences by race and ethnidty: While 
about 56 percent of white children 
live in a traditional nuclear family, 
the number drops to 26 percent 
among African-Americans and 
about 38 percent among Hispanics. 
who can be of any race. 


Nearly three-quarters of children 
live in a household with two parents, 
although not necessarily their biolog- 
ical parents. 

Of the nearly 64 million American 
children, IS percent live in blended 
families, defined as homes that in- 
clude at least one stepparent, stepsi- 
bling or half sibling, according to the 
report, “Diverse Living Arrange- 
ments of Children,” which is based 
on 1991 data. 


In his .UioHB 
General Anting, 
com mando- 
crewbactnoj I" 
hisims^ou/ 


I. month, 

3 -that the 

^WACS 
»ied for 




Away From Politics 

• The Yale scientist who accidentally became infected with the 
Sabia virus with which he was woridng has been discharged 
from Yale-New Haven Hospital in Connecticut and is expect- 
ed to recover fully. No secondary cases have been discovered 
among people with whom he had dose contact or those who 
ny a min ed him or handled Ms specimens. 

• A Mood test for detecting prostate cancer has been approved 
by the Food and Drug Administration. The disease is the 
second most common cancer among American men. 

f The Immigr ation and N atura l izati on Service awarded a near- 
ly $300 milli on contract to upgrade computer systems to ndp 
border agents catch and deport more illegal aliens. 

• Schoolteadieis convicted of fdony sex crimttwtfistnbotiiig 

to minora will be forever barred from California class- 
SoSs^der a bUlsigned into law by Governor PeteWrtorr 

• The international fishing industry Aooped more than 740 
nriffioa pounds (335 million kilograms) of edible fish over- 
b^MtbT 9ortb Pacific last year, according to a study 
£X£d for Alaska’s Fish and Game Etepwmem. 

• The first person granted pofitica! asylum by U.S, authorities 
becauihe^ wasfltffing persecution for being gay has died of 
Am^his lawyers said. Ariel Da Silva, 36, a native of Mexico, 

A^gete last week. He was given asylum in March. 

• An FBI agent caught a “most-wanted” computer hacker in a 

? . Angeles. Justin T. Petersen went on the 

mn nearly a year ago while awaiting sentencing on a con vie- 
ticSr sMnmfng^onJ the hijacking of radio station phone lures, 
ft A Northern Cafifonua man pleaded gMlty to setting three 
fnmt fires in 1992 in a plot to make money for outfits that 
wn^i^^urp^n. to slate rurd federal agencies. 


Racism Charge Heats Up Simpson Case 


By Seth Mydans 

New York Tuna Service 

LOS ANGELES — In a 
heated exchange over the issue 
of race in the O.J. Simpson 
case, a defense lawyer has ac- 
cused a white detective of hav- 
ing “repugnant" attitudes to- 
ward blacks, and the detective’s 
lawyer has accused the defense 
of “malicious tactics” in trying 
to smear the officer. 

As emotions rose and legal 
maneuvering intensified three 
weeks before the start of jury 
selection, Judge Lance A. Ito of 
Superior Com said Monday 
that be would strictly limit the 
lawyers" public statements 
about the case. 

Judge Ito also said that he 
would unseal Wednesday an 
envelope containing a mysteri- 
ous item of evidence submitted 
by the defense last month. 

The exchange on the issue of 
race came as defense lawyers 
sought the personnel records of 
four detectives in the case, argu- 
ing that their attitudes and ve- 
racity were cxuciaL 


The arguments focused on 
one of the detectives, Mark 
Fuhnxtan, who testified at the 
preliminary bearing that while 
searching the grounds of Mr. 
Simpson s house he found a 
bloody glove that appeared to 
match a glove found at the 
scene of the killings. 

[Mr. Fuhrman has been tak- 
en oft field duties and assigned 
to a desk job, Reuters reported 
Tuesday. Mr. Fuhnnan’s law- 
yer, in interviews with NBC and 
CNN, said the decision had 
nothing to do with the Simpson 
case or the defense attacks but 
added that his diem was un- 
happy about the shift.] 

Mr. Simpson is charged with 
first-degree murder in the kill- 
ings of his former wife, Nicole 
Brown Simpson, and her friend 
Ronald L. Goldman. 

Johnnie L. Cochran, one of 
Mr. Simpson's lawyers, said 
that Mr. Fuhrman “harbors ra- 
cial animosity toward African- 
Americans and, more specifi- 
cally , toward African- 
Americans who are married to 
Caucasians." 


Mr. Cochran asserted that in 
the past Mr. Fuhrman bad shot 
a black suspect and tried to 
plant evidence that would in- 
criminate him. Mr. Cochran 
also quoted from a recent depo- 
sition in which a woman ac- 
cused the detective of having 
said that he would “make up” a 
legal pretext to harass an inter- 
racial couple. 

In response, Mr. Fuhrman’s 
lawyer, Robert Tourtdot, de- 
nied that the detective was rac- 
ist and said the deposition by 
the woman, identified as Kath- 
leen Bell, “smacks of a fabrica- 
tion.” 

Mr, Tourtelot accused Mr. 
Simpson's defense lawyers of 
using “malicious tactics" to 
smear the detective and “attract 
attention away from Mr. Simp- 
son in these brutal murders.” 

■ Limits on Publicity 

Jim Newton end Andrea Ford 
of the Los Angeles Times report- 
ed; 

Judge Ito has distributed a 
proposed order that would hall 


everyone connected with the in- 
vestigation from publicly dis- 
cussing evidence, documents or 
exhibits. 

The judge died two reports 
last week as having been partic- 
ularly irritating. One involved 
reports by the Los Angeles 
Times and television station 
KNBC-TV that microscopic 
analysis had determined that 
the hairs from a knit watch cap 
found at the crime scene resem- 
bled Mr. Simpson's hair. 

The second was a broadcast 
report indicating that the item 
in the envelope displayed in 
court during the preliminary 
hearing was a knife. That infor- 
mation was first reported more 
than a month ago, although last 
week’s stoiy added that the 
knife "has been tested, was un- 
damaged and still has a price 
tag on it" Judge Ito said. 

“A trial court not only has 
the authority but the affirma- 
tive duty to protect the right to 
a fair triaL” Judge Ito wrote. He 
said that “the court must use its 
inherent authority to control 
the judicial proceedings." 












Page 4 


wrnMrcn*v ttmicr 01 inai 

I IV I O IV 



Heralh 


INTERNATIONAL 



tribune 


PUBLLSIIED WITH THF. M-W I (IKK TIML<i AN I* THE WASHINGTON POST 


Plutonium on the Agenda 


As far as the world knows, ihe pluto- 
nium smuggled out of the former Soviet 
Union has not, so far, been sufficient to 
build a nuclear weapon. But the evi- 
dence that there is any trafficking at all 
in this sinister material is profoundly 
troubling. It is the most serious kind of a 
warning that governments — and not 
only Russia’s — need to get urgently to 
work to manage and control die large 
surpluses of the stuff that the end of the 
Cold War has suddenly created, 

Jn the past couple of years, a long 
fhelf-full of reports and studies has de- 
scribed the dangers that can arise as the 
-j cl ear powers dismantle their weap- 
ons, especially in a state that has col- 
lapsed into separate and independent 
countries. The interceptions of small 
amounts of plutonium by the German 
police point to a lapse of security that 
'many dose watchers foresaw as entirely 
possible. But few governments, and cer- 
tainly not that of the UniLed Slates, are 
ready to deal with it. 

The United States does not have a 
clear strategy for dealing with its own 
excess plutonium, let alone that of other 
countries. Various agencies seem to be 
moving in different directions. 

As for working with Russia, Congress 
has appropriated some money to help 
Moscow set up a tight system of ac- 
counting and control, but very little of 
that money has actually been spent. At- 


tempts at cooperation have run into the 
general political turmoil there and, be- 
yond that, a widespread reluctance 
among Russian officials to let foreigners 
anywhere near a substance that many 
still consider a great national asset. 
There are a lot of people, and not only in 
Russia, who equate plutonium with 
power in both meanings of the word — 
national power, but also energy to heat 
and light cities in a cold climate. 

Russia's President Boris Yeltsin is to 
visit German Chancellor Helmut Kohl 
in Berlin next week, and later in Septem- 
ber be is to meet President Bill Clinton. 
The security over nuclear materials de- 
serves a high place on the agendas for 
these conversations. 

Mr. Clinton and his foreign policy 
advisers have been greatly distracted in 
recent months by Cuba, Haiti and Bos- 
nia. Ail three cases have real signifi- 
cance to the United States as tests of its 
principles, particularly its principles of 
human rights. But in terms of American 
national interest and national security, 
Caribbean and Balkan policy hardly 
compare to America's stake in the future 
of Russia and its nuclear armory. The 
leakage of plutonium so far is only a hint 
of what could happen. It is a hint that 
requires the most intense consideration 
by the two presidents next month when 
they sit down together. 

— THE WASHINGTON POST. 


Stockholders and Consumers Can Make Beijing Listen 


N EW YORK — On just one issue. 
President Bill Clinton, American 
business and the Chinese Communist 
leadership have taught the people of the 
United States three nasty lessons. 

The issue is human rights. It is apallid 
phrase for what it means: freedom, or at 
least some surcease, from torture, forced 
labor and deprivation of the right to 
speak and worship as we are moved. 

The question is what Americans can do, 
as individua] members of a free society, to 
override their instructors. The answers: 
stockholder action, and boycott. 

Mr. Clinton taught his lesson by be- 
traying promises he made with his mouth 
while campaigning and with his pen after 
election — to use higher tariffs on Chinese 


By A. M. Rosenthal 


goods to pressure Beijing into h uman 
"lief for Chinese and Tibetans. 


rights relic 

Thus he taught the world that his word 
on human rights cannot be trusted, even 
when he puts it on paper. Since this is an 
issue that touches the whole world, the 
cause of wars throughout modem histo- 
ry, it is a matter of moment and danger . 

How can Mr. Clinton preach human 
rights in Cuba as a reason for the embar- 
go, and be believed, after reneging cm a 
pledge to use a much milder economic 


weapon against China's greater tyranny? 

How can he denounce ethnic cleansing 
in the Balkans and dose his mouth and 
heart to moving Chinese into Tibet and 
Tibetans out of their tomes — a continu- 
ing atrocity almost a half-century old? 

The second lesson, from American 
business, is that Chinese and Tibetan 
blood and pain do not count on the 
bottom line. American business in China 
sups eagerly with the Devil American 
executives, a planeload, are now at table, 
ushered in by Secretary of Commerce 
Ron Brown to make deals, without refer- 
ence to human rights. 

When the issue was higher trade tar- 
iffs, the China trade said "no" and won. 
Then human rights supporters in Con- 


gress suggested targeting only products 
of the Chinese 


of the industrial empire 
army. Mr. Clinton and U.S. b usin ess 
said “no" — and won. 

Now human rights groups business 
for a code that would show some smid- 
gen of interest about labor conditions in 
China. From the adminis tration and 
business, no action. 


Writer, haven't you learned that busi- 
ness is business? Sure, but I learned at 
school and at home to kind of admire 
America, so it was just hard for me to 
believe right away that so many UJS. busi- 
nesses would be so cold and so craven. 

Lesson three. Beijing taught us that the 
CKntnnian and business argument that 
more trade would mean more human 
rights in China was false. „ 

Human rights groups and American 
correspondents report that persecution 
of dissidents and clergymen, has in- 
creased pointedly since Mr. Clinton 
dropped the tariff threat 
The Chinese Communists are creating 
a system in which controlled capitalism 
and tyranny work together — familiar 
from Hitler to Saddam. Spare us Wash- 
ington's pout of innocence. 

But if Washington and American 
business do not care that their country 
and companies help finance torture 
cells, what can an individual American 
do about it? . 

Two things, together. Use the stock- 
holders right to demand a human rights 
code for every UJS. business investing in 
China- It worked on South Africa. 

And in combination, boycott across 


.the board; shoes, toys, w* 
thousands of other exports to the 
States that give Befimg its S30 billion 
fttimifll pade bonus from America- 
The China lobby, the administration 
and even some human rights peatfe*™ 
say it will just get Beijing mad; forfena. 
But cutting down that huge trade advan- 
tage evenby some annual billions will ** 
the first economic pressure for human 
rights applied to China by Americans- 
Ben^ wifl at last face the choice be- 
tween e ari ng oppression and seeing its 
essentidoade balance wither. 

Combined with stockholder pressure 
on American corporations, backed by 
American labor, and preached in Ameri- 
can churches and temples, a boycott 


UlVilw k mu , 

could buy some liberty for persecuted 
s dissidents, workers and clergy- 


Chinese > .. . .. — - — - — — 

One sure thing; It would show more 
rights achievement than today's ap- 
peasement policy. That stands at zero, 
and getting lower- 

The boycott would be an act of indi- 
vidual conscience, the answer to the old 
question: But what can just one person 
do? At least we would not be wearing 
stained do*b«, and that would be good. 

The New York Times. 


Russia Isn’t Supposed to Be Rebuilding a Soviet-Style Military Bloc 


Jobs Versus Inflation 


Alan Blinder, recently appointed vice 
chairman of the Federal Reserve Board 
by President Bill Clinton, called last 
week for the Fed to use monetary policy 
to bring down unemployment from tem- 
porarily high levels. That put him at 
odds with Chairman Alan Greenspan’s 
testimony to Congress tharthe Fed can- 
not control employment and ought to 
focus only on inflation. The difference 
-at first blush seems stark: one man wor- 
ried about jobs, the other about prices. 

Mr. Blinder's declaration may have 
been designed to enhance the likelihood 
. that the White House would elevate him 
to the Fed chairmanship when Mr. 
Greenspan's term expires in early 1996. 
But the statement should have come as 
no surprise. He preached the same doc- 
trine as an academic and before Con- 
gress. Indeed, it is his dovish stance on 
inflation that made Him an attractive 
appointment to a White House that des- 
perately seeks to create jobs. 

The dispute is real, but easy to exag- 
gerate. Mr. Greenspan, too, is worried 
about jobs, which he believes are best 
ited by wringing inflation complete- 


creat 


ly out of the system. Both economists 
agree that the Fed cannot drive unem- 
ployment below current levels, about 6 
percent of the labor force, without doing 
damage. According to both men, if the 
Fed were to pour money into labor mar- 
kets that tight, wages would rise and 
drag prices and interest rates along. 
Eventually the Fed would be forced to 
stamp out the rising inflation by chang- 
ing course — clamping down on the mon- 
ey supply and thereby throwing the eco- 
nomy into a job-destroying recession. 

Yet there are circumstances that 
could bring their differences to the sur- 
face. Suppose, for example, that infla- 
tion rose above current levels while un- 
employment climbed toward 7 percent. 
Mr. Blinder would probably advocate 


pushing down interest rates in an at- 
tempt to spark investment spending 
and, therefore, more jobs. But Mr. 
Greenspan would argue that Mr, Blind- 
er's policy would backfire because bond 
markets would anticipate that the Fed 
was about to trigger higher inflation and 
would therefore demand higher interest 
rates, the opposite of the result Mr. 
Blinder intended to achieve. 

The important ^oint. however, is that 
their policy prescriptions are unlikely to 
prove greatly different in practice. Nei- 
ther economist is a zealot. Mr. Green- 
span has skillfully steered the economy 
along a path of noninflationary growth 
by guiding monetary policy, no matter 
what he tells Congress, with an eye on 
employment as well as prices. Mr. 
Blinder says he is an inflation dove, slow 
to raise interest rates to combat infla- 
tion, but he voted to raise interest rates 
earlier this month even though inflation 
rates remain very low. 

He was able to do so without jeopar- 
dizing jobs because he recognized that 
unemployment was hovering at around 
6 percent, which is about as low as the 
economy can sustain over the long haul. 
Had the Federal Reserve refused to in- 
tervene with higher interest rates, infla- 
tion would almost surely have picked up 
by the end of the year. 

When Mr. Greenspan and Mr. Blind- 
er summarize their theories of interven- 
tion in the economy, neither sounds 
convincing. Neither Chairman Green- 

S Jan’s sole focus on inflation nor Mr. 

linder's willingness to worry about in- 
flation only after the economy hits ca- 
pacity is a complete answer. But Mr. 
Blinder is surely right that the Federal 
Reserve must be concerned about em- 
ployment, and it does not hurt For the 
nation's assembled bankers and econo- 
mists to be reminded of that. 


N EW YORK — In recent 
weeks, Russia and other for- 
mer Soviet republics have pressed 
forward with plans to create a 
military alliance that mocks Pres- 
ident B01 Clinton's Partnership 
for Peace, doing precisely what 
that proposal was designed to 
avoid: creating new Eastern and 
Western blocs. 

More ominously, even as nu- 
clear weapons are being with- 
drawn from Ukraine, Belarus and 
Kazakhstan, many in the Russian 
military and political elite want to 
reassert authority to protect for- 
mer Soviet republics with Rus- 
sia’s nuclear arsenal. 

The means for spreading Rus- 
sia’s nuclear reach is a draft agree- 


By Adrian Karatnycky 


The West has no strategy 
to deal with the threat of 
post-Soviet integration. 


— THE NEW YORK TIMES. 


tnirnt for a military alliance, which 
is to be submitted early in 1995 to 
the leaders of the Commonwealth 
of Independent States. The plan 
was endorsed at a late July meet- 
ing of the commonwealth's Collec- 
tive Security Council and is ac- 
tively supported by Russia’s 
defense minister, Pavel Grachev. 

According to the common- 
wealth’s chief of staff for mfli- 
taiy coordination, General Vik- 
tor Samsonov, Russia’s strategic 
nuclear forces will provide a 
kind of shield against “possible 
aggressive intentions against all 
CIS participant states." 

The draft security treaty also 
calls few the eventual creation of 
joint armed forces, collective 
peacekeeping forces and a joint 
air defense system. In short, it 
seeks to restore a cohesive, coor- 
dinated military force under uni- 
fied control and under Russia's 
nuclear protection — a defense 
arrangement resembling that of 
the Soviet Union. 


More and more, influential poli- 
ticians in Russia are posing obsta- 
cles to global security interests. 

Konstantin Zatulin, chairman 
of the Parliament’s Committee 
for Commonwealth Affairs, is 
beating the drums for a “strategic 
partnership" between Russia and 
Ukraine. He hints that Russia 
may not pressure Ukraine to give 
up its nuclear weapons after all — 
a dear retreat from pledges to turn 
Ukraine into a non-nuclear state. 
On a visit ' to Kiev last month, he 
suggested that if Ukraine and Rus- 
sia became strategic partners, 
“the issue of Ukraine’s midear 
disarmament would not be a top 
priority for Russia." 

While Washington’s attention 
is focused on the smuggling of 
small — if deadly — amounts of 
plutonium, the far more impor- 
tant commitments to remove and 
dismantle the nudear arsenals of 
Ukraine, Belarus and Kazakh- 
stan could be undermined. 

Until the new military alliance 
began gathering support among 
the independent republics, the 
Soviet nudear shield had been 
steadily receding. The United 
States should now make dear 
that the expansion of that shield 
would disrupt the equilibrium be- 
tween NATO, the former Soviet 
lblks and Eastern Europe. 

Te Nudear Nonproliferation 
Treaty is of only limited help. It 
restricts the dispersal of nuclear 
weapons but does not prohibit 
states from allowing allies to sta- 
tion nudear weapons on their soil. 

So the United States and its 
NATO allies will have to use all 
diplomatic means to convince 
Russia that it isn’t in anyone’s 
interest to draw more countries 
behind a nudear trip wire. 

At the moment, Russian foreign 
policy is in the hands of pragma- 
tists committed to democratiza- 
tion, economic reform and cooper- 
ation with the West But the 


Yeltsin team faces a stiff internal 
challenge from popular and pow- 
erful anti-Western forces. 

Support for the restoration of 
the Soviet Union is widespread in 
the Russian mili tary, and the Par- 
liament is dominated by anti- 
Weston rhetoric — from Vladi- 
mir aririnovsky’s neo-imperialist 
rantings to the vituperative 
speeches of the Communist lead- 
er Gennadi Zyuganov, whose 
party seeks to revive the U.SJS.R. 
and attacks the United States for 
seeking to impose a worldwide 
“military dictatorship.’’ 

Moreover, the aro-Co mmunis t 
Agrarian Party has made com- 
mon cause with nationalist zeal- 
ots like Sergei Baburin. 

Together, these parties cap- 


tured nearly SO percent of the 
vote in Russia's December 1993 
parliamentary elections, suggest- 
ing that a candidate sharing their 
anti-Western views has a real 
chance of winning Russia’s 1986 
presidential elections. 

As Russia's defense establish- 
ment presses forward with effects 
to bmid a new miHlaiy affiance, 
America and NATO should ask 

against whom this «IKann» anri fts 

nudear shield are directed. 

With Russia’s democratic fix- 
ture open to question, the United 
States ought to be unequivocal in 
its opposition to a new mffitazy- 
political-nudear alliance among 
the stales of the former USS.K. 
It should concentrate on convinc- 
ing Ukraine, which still holds the 
world's third largest nuclear ~rse- 
naL to honor commitments to r. 


Gnquish it and to resist Russian 
entreaties to join its military bloc. 

The West has so far failed to 
develop strategies to deal with the 
threat of post-Soviet integration. 
At this delicate moment, a mis- 
calculation could mean acquies- 
cence in a new post-Cold War 
rivalry. And if reformers fail in 
Russia, a new East-West nudear 
divide could prove as damaging 
to the interests of democracy and 
prosperity in the region as the 
decisions made half a century ago 
by die Allies in Yalta. 


The writer is president of Free- 
dom House, a human rights orga- 
nization, and co-atdhor of “New 
Nations Rising: The Fall of the 
Soviets and the Challenge of Inde- 
pendence. 1 * He contributed this 
common to The New York Times. 


repub 


Apology 


The issue of IHT for 2 August contained an article by Philip Bowring on the 
subject of “Asian Values". The article contained a reference to a “battle between the 
corporatist needs of the stale and the interests of the families who operate it” and 
"dynastic politics” in Asia and in Singapore. 

We recognize that this passage meant to readers that Mr. Lee Hsien Loong 
(currently Deputy Prime Minis ter and a Cabinet member for 10 years) had been 
appointed tahis present post of Deputy Prime Minister by Mf. GdbCbok Tong (the 
Jfrime Minister) J* and earlier posts of Minister of State-and subsequently Minisierfor 
Trade and Industry by Mr. Lee Kuan Yew (currently Senior Minister and until 
November 1990 Prime Minister), nor on his own merits but purely because he was 
Mr. Lee Kuan Yew’s son; and that there was a battle between the oorporatist needs of 
the state of Singapore and the interests of the Lee family (father and son) who 
operated it. 

We admit that these allegations are completely without foundation. We apologize 
far them without reservation to Prime Minister Goh Chok Tong, Senior Minister Lee 
Kuan Yew and Deputy Prime Minister Lee Hsien Loong. We undertake not to make 
further allegations to the same or similar effect 

. Richard McCJean, Publisher. 

John Vinociir, Executive Editor. 

Philip Bowring. 



r.i ‘ i 




Trimming at the Pentagon In Japan’s Schools, World War II Is No Longer Something to Skip ) 


The Defense Department faced two 
roble 


at this mismatch. One is that it is the 


broad budget problems when the year 
began. President Bill Clinton helped de- 
flect one, and now Defense Secretary 
William Perry and his deputy, John 


budget that needs to be adjusted, the 

.Thedii 


Deutch, may be moving toward a con- 

MUl' 


slructive solution of the other. 

The first problem was to protect the 
already reduced amount of money that 
the president had proposed for defense. 

Some in Congress wanted to impose 
further cuts and use the proceeds to help 
finance domestic programs. The presi- 
dent announced early on that he would 
oppose such a step, and he was right. 
The defense budget in recent years has 
already been cut more in real terms than 
most people realize and about as much 
as it ought to be in terms of national 


security. The president has prevailed. 
The — ' ' * ' 



and 
year’s 

but the defense bills will be in about the 
zone he proposed. 

The second problem was that the 
president's budget still was not enough 
to finance the official defense program 
— to pay for everything that the services 
believed was needed. 

There are, of course, two ways to look 


other that it is the program. The difficul- 
ty is especially great in a period such as 
this, when the confrontation with the 
former Soviet Union has subsided and it 
is uncertain what dangers may take its 

E l ace. What Messrs. Perry and Deutch 
ave done is order the services to draw 
up plans for canceling or deferring some 
of the costlier advanced weapons on 
their lists. Thai would free funds to be 
spent instead on such things as readi- 
ness and military pay. 

The argument against is that the de- 
partment should not sacrifice the techno- 
logical superiority that the threatened 
weapons would continue to provide. But 
that does not mean that every weapons 
system on the board has to lie built, or 
built according to last year’s schedule. 
The defense budget is not going to get 
any bigger in the foreseeable future. The 
planning and buying programs need to be 
based on that reality; they can't pretend 
it doesn’t exist If done right the process 
that Mr. Perry and Mr. Deutch have 


T OKYO — Whatdo the Japa- 
nese teach their children 
about World War II? 

A recent outbreak of war-relat- 
ed controversies here has demon- 
strated that Japanese feelings 
about this nation's role in the 
world war remain confused, con- 
flicted and contentious. Nearly 
half a century after the last 
bombs exploded, the Japanese 
are still engaged in explosive ar- 
guments about to whom and how 


By T. R. Reid 


much they ought to apologize. 

ries that Ja- 


begun will more likely avoid than create a 
raich i 


future situation in which the services lack 
the resources they genuinely need. 

— THE WASHINGTON POST. 



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In the Asian countries 

pan invaded, and in the West as 
well, it is often said that this 
lingering confusion is due in part 
to Japanese education. It has 
been conventional wisdom that 
Japanese history classes and 
textbooks skip World War II, 
offering vague explanations of 
Japan's motives and ignoring ex- 
amples of Japanese brutality to- 
ward its perceived enemies. 

But this view may be out of 
date. A Washington Post survey 
of the 12 textbooks most widely 
used in Japanese schools this 
year, plus various supplementary 
materials often used by teachers, 
indicates that textbooks have 
considerably increased tbeir cov- 
erage. and their criticism, of Ja- 
pan’s actions in World Wax H 

In 1 989, the Education Ministry 
issued a new set of curriculum 
standards for history education; 
among other things, the standards 
call for increased attention to 20th 
century events and Japan’s rela- 
tions with other Asian countries. 
High school and college entrance 
exams now indude many ques- 
tions about World War II, giving 
students and teachers a mayor new 
incentive to focus on the war. 

Accordingly, textbook publish- 
ers have responded. The current 
editions of major textbooks state 
that Japan waged a “war of ag- 
gression'' as a "fascist state” ai- 
ded with Italy and Germany. The 
books discuss Japan’s use of poi- 
son gas and slave labor in Asia. 

The textbooks now include in- 
formation about Japan's brutality 
toward its Asian neighbors. Every 
text surveyed discussed the Rape 


Of N anking, a 1937 massacr e of 
more than 100,000 Chinese civil- 
ians that is perhaps the most noto- 
rious of the Japanese war crimes. 
Until about a decade ago, the mas- 
sacre was not even mentioned in 
most Japanese schools. 

None of the textbooks sur- 
veyed has much to say about the 
role of the late Emperor Hirohito 
in approving or steering the war 
effort. Even today, that question 
is too emotionally and politically 
charged to deal with. 

The texts all note that Japan’s 
government refused to surrender 
even when there was no hope of 
victory, “determined to . . . fight 
to the death on Japanese soil, 
whatever sacrifices this might 
mean for the people,” as the 
sixth-grade text “New Social 
Stadies” puts it And yet the ka- 
mikaze suicide pilots are barely 
mentioned in textbooks here. 

In the current crop of texts, 
the outline of World War U in 
Asia is close to what American 
students learn: Japan set out ear- 
ly in this century to conquer and 
colonize East Asia —not to "lib- 
erate” the Asians, as nationalists 
here maintained. The United 
States responded with economic 
sanctions, de manding that Japan 
withdraw from the Asian main- 
land. In response, Japan's gov- 
ernment made a cold-blooded 
decision to attack the U.S. fleet 
at Pearl Harbor but continued 
sham negotiations with Wash- 
ington to make sure the raid 
would be a surprise. 

While Amen cans consider it 
natural that textbooks become 
more theoretical and more ana- 
lytic as the students get older, in 
Japan the opposite pedagogical 
style rules. The elementary and 
junior high history texts here pose 
many discussion questions and 
frequently ask pupils to consider 
how the war looked from the 
viewpoint of Japan's enemies. 
The nigh school texts, in contrast, 
are dry and factuaL 

Discussing Japan’s motives for. 
its attempted conquest of East 



to liberate Asia from Western co- 
lonial rule ... However, inside 
Asia, resistance grew against the 
so-called “Great East Asian Go- 
Prosperity Sphere,’ Japan’s effort 


to replace the Western powers 
with Jaj 


i dominance.” 

BuL the elementary school text, 
“Social Studies, 6th Grade,” 
makes the same point through 
questions to the student 

In one chapter, the book dis- 
cusses the “unequal treaties” that 
Western nations imposed on Ja- 
pan and other Asian countries in 
the 19th century. Moving on to 
20th century history, it says, "Ja- 
pan itself imposed an unequal 
treaty on Korea in an attempt to 
gain a footing on the continent.” 
In the margin of the page, am 
illustration shows a sixth-grade 
girl asking, “Say — didn’t we hear 
about “unfair treaties' some- 
where else a little earlier?” 

The textbook “Junior High 
Social Studies” tells of Yu 
Gwansun, “the Korean Joan of 
Arc,” and other Koreans who 
were tortured and killed for re- 
sisting Japanese control “But 
few Japanese,” it says, “made 
any attempt to understand the 
outlook and circumstances of 
the Korean people who sought 
freedom and independence.” 

The attack on Peari Harbor on 
Dec. 7 (Dec. 8, Japan time), 1941, 
gets a passing mention in most 
texts. “Japan, which had been se- 
cretly preparing for war while con- 
tinuing negotiations with (he UiL 
invaded the Malay Peninsula on 
Dec. 8, 1941, and also attacked the 
UJS. bases at Peari Harbor, Ha- 
waii,” notes “Junior High Social 

Studies — History Section.” “As a 
result, the whole wodd had be- 
come a battlefield, with the fascist 
countries of Germany, Italy and 
Japan pitted against , the Allied 
Powers, the U.S., Britain, 
UJ5.SJL, China and others.” 

Textbooks and supplementary 
materials used in schools today 


rest of Asia still feds anger and 
suspicion toward Japan. That may 
explain the angiy reaction both in 
Japan and in East Asia this year 
when Japan's then justice min«tBr 
declared (hat the Rape of Nanking 
was a “fiction.” The texts surveyed 
all describe the 1937 massacre, 
with estimates of the dead ranging 
from 110,000 to 300,000. The 
books describe similar Japanese 
conduct in Manchuria 


Both Japanese and forego com- 
mentators have noted for decades 
that many Japanese people: see 
their boon try as the victim of 
Worid War fi, even though Japan 
started the war. For all the new 
focus on Japan's selfish motives 
and evil deeds, the current texts 
also provide material to feed the 
sense of victimization. . 

AH the texts surveyed devote 
considerable attention to Ameri- 
can bombing raids on Japan, with 
photos and paintings and quota- 


tions from people who lived 
through the raids. The atomic 
bombs at Hiroshima and Nagasa- 
ki get the most attention, with con- 
siderable discussion as to why the 
United States dropped the bombs. 

Most texts cite the tbetiry that 
President Harry Truman frit the 
bomb would shorten the war. But 
they don't stop there. 

“Was the atomic bomb really 
necessary?” asks “Junior High So- 
cial Studies.” “President Truma^p 
said that use of the atomic bomb 1 > 
saved the lives of tens of millions 
of American and allied troops. 
And En glish scientists claimed 
that the dropping of the atomic 
bomb sacrificed ... the citizens 
of Hiroshima and Nagasaki as 
pawns in. postwar strategy toward 
the Soviet Union. Another theory 
holds that the band) was dropped 
in order to justify*... the $2 bil- 
lion spent in making the bond).” 


The writer is Tokyo bureau chief 
for The Washington Past 



IN OUR PAGES; 100, 75 AND 50 YEARS AGO 


1894; Alien Anarchists 


NEW- YORK — Although the 
bill to exdude alien Anarchists 
from the United States failed to 
pass the House the Administra- 
tion has determined to stretch the 
existing laws as far as possible. All 
the United States Consuls have 
beat instructed to warn the State 
Department of intended depar- 

turesof suspects and to send rnrir 
photographs wherever possible. . 
The pnnoroal otgection to the MU ■ 
was that the question of whether 
a man is an Anarchist ought not 
to be determined by an executive 
officer but by the Courts. 


Stales, indeed, of the worid. There 
is, of course, cause for grave coo- 
cemin the outlook to-day; but in 
Compmson with the riniatinn that 
ousted in the summer of 1917 one 
is almost ashamed to fed any un- 
easiness of the future. When Gen- 
eral Pershing landed in France, 
ovtination itsdf was in mortal 
danger- That h was not utterly 
destroyed is due to his genius for 
OfSatnzatito and leadenhto and to 




1944; Premier de Gaulle 


1919 : 

PARIS — General. Pershing 
leaves for America to-day [Aug. 
31). The work he has accom- 
plished tririle in France consti- 
tutes one of the most glorious 
pages in the annals of the United. 


PARIS — [From our New York 
Coition:! A provisional French 
government headed bv General 
Charles de Gaulle as President of 

the Connell- (Premier), and in- 
cluding Communists some 
men whose real identity is stiD 
hidden, by assumed war names. 





was announced today [Au& 30] 
by the French Conmntteeof Na- 
tional Liber ation. 


V. 


i , . 


i.-’t, t*- 







l* 


1 











*-»• l X$£> 


L m 


INTERNATIONAL HERALD TRIBUNE. WEDNESDAY. AUGUST 31, 1994 


opinion 


Page 5 


UarvBj, 


Health Care Needs More 
Than a Dose of First Aid 


W ASHINGTON — America’s 
dysfunctional Congress, mir- 
roring the fragmentation and fa- 
tigue of a feckless electorate, seems 
to have decided that comprehensive 
health care reform is dead.. ■ - 
But do the writers of its obituar- 
ies live on the same planet as we 
do? Do they- know what unbridled 
health-care costs are doing, every 
hour of every day, to the national 
pocketbook? Here is a little caution- 
ary tale, one of many. ' 

Recently, my elderly mother-in- 
law entered a hospital m Knoxville, 
Tennesse, to be treated for an infect- 
ed toe Her condition was serious 
and it was worsened by a lxme- 
marrow condition that lowers her 
white-celi count and impairs her im- 
mune system. She emerged from the 
hospital two minor operations, sev- 
eral blood transfusions and five 
weeks later.- No one expected a bar-, 
gain. But nor did anyone aspect the 
bill. It was $46,000, exclusive of phy- 
sicians’ fees. Forty-six thousand 
dollars! Multiply that experience by 
millions and you can see why medi- 
cal entitlements — she is of course 
covered by Medicare. — are eating 
the federal budget alive. 

Unless you actually pay such a 1 
hospital bul or plead indigence, you 
may not ordinarily wonder why the 
hospital treatment of a toe infection 
costs twice as much as a yes's study 
at Harvard. I am not sufficiently 
conversant with hospital cost-ac- 
counting to analyze my mother-in- 
law’s bill; but if you Jmow just a fail, 
about what is going on in the word 
world of health-care charges, you can 
attempt a few wefl-informed guesses. 

The pharmacy bill alone was al- 
most $10,000 of the $46,000 total 
Close scrutiny of the indecipher- 
able chemical terminology would 
show that perhaps $1,000 rqire- 
scnted the value of ingredients and 
manufacturing costs. To those 
would have to be added advertising 
costs (including the cost of the lav- 
ish advertising campaign the phar- 
maceutical industry is conducting 
against any regulation of drug 
prices). You could throw in hand-' 
some dividends for the hbldeirs of 


By Edwin M. Yoder Jr. 

America’s pharmaceutical stocks, now bene- 
ODgresS," ' nil t v . ntiixg from research often substitu- 
tion and fa- : tially subsidized by public funds, 
notate, scents . No doubt- there is also a hidden 
omprchehsive ■ subsidy for overseas purchasers or 
lead. 1 :- - American medications who buy 
jf its obi rear- ■' thereat a fraction of their cost to 
planet as we. American patients, 
tilt unbridled. ' Beyond these hidden costs, you 
doing, every could add the taxpayers' comribu- 
i the na t roo p* • ‘tion in . the patient's behalf to the 
little caution- amortization - of expensive high. 

tech • diagnostic equipment that is 
lv mother- in- of little : or no value in treating an 
m Knoxville, . inf ected toe. You could throw in a 
I for an infect- . contribution to investment in emp- 
j: was serious v ty. beds, and a donation toward the 
I "by. aYbone- cost of' treating indigent patients 
H lowers her who use the hospital's emergency 
□pairs her im- room for - routine medical care, 
aged from the from sniffles to stab wounds. And 
^rations, $ev- finally, more titan a few dollars for 
ms and five liability insurance premiums, 
pectcda bar- Some_Of these indirect costs, in 
ine expect the moderation, would count as legiti- 
:Iusiveofphy- mate costs' of doing business. But 
six thousand these days an inflated hospital bill 
experience by reflects far more than treatment plus 
ee why modi- reasonable cost- Thc health care in- 
e is of course dustry — -including private insurers, 
— are taring with their 10 percent to IS percent 
re. administrative overheads — is 

f.pay such a 1 unique: It- is one money-gobbling 
adigencc, you . enterprise that we dare not allow to 
mder why the - price itself oat of business. It is both 
l toe infection ~ immune to the usual checks of the 
a year’s study - market and, so far, equally immun e 
>t sufficiently - to sensible regulation, 
pital cost-ac- No health care reform bill that 
iy mother-in- fails to address all the concealed 
now just a Wt_ transfer payments, pass-through*; 
3 in the word and subsidies that flow beneath the 
arges, youcan swollen Surface of medical billing 
irined guesses. — and their often inequitable dis- 
alone was al- tribution — makes the slightest 
S46.000 total sense: Nor Will reform address the 
: indecipher- .monumental threat that health care 
lology would entitlements' pose to the nation's 
Sl.Ow repre- fiscal sanity.-; 
gredients and - ThctaHt about “incremental” re- 
s. To those forms is merely a handy way to 
■d. advertising dodge responsibility for inaction in 
»t of the lav- an election year. A little first aid for 
ign the phar- the health care system may not do 
s conducting harm, but h will leave the great issue 
ion Of drug of the coat and apportionment of 
row in hand - 1 American health care unaddressed, 
he hbldeirs of WashingtbnPost Writers Croup. 



LETTERS TO THE EDITOR 


le ^Jj Hie Elgin Marbles 


Regarding the editorial “ Sending 
Art Back Home ” (Aug. 24): 

The editorial states that the Elgin 
Marbles were acquired by a colo- 
nial regime from a now nonexistent 
imperial government, under then 
valid title, in a different world. But 
should it not be conceded that in 
this different world, after the impe- 
rial demise, there is a different mor- 
al imperative and certainly a differ- 
ent sense of possession? 

Also, the marbles were not taken 
from Greece by the British govern- 
ment but by Lord Elgin, who sold 
them later to the government. 

If a Cypriot mosaic is finally re- 
turned from New York because it fits 
perfectly with a piece that the looters 
left on the site when they ripped it 
away, what then should be said for 
the half of the marbles that Lord 


Letters intended for publication 
should be addressed , Letters to the 
Editor " and contain the writer's sig- 
nature, name and full address. Let- 
ters should be brief and are subject to 
editing We cannot be responsible far 
the return of imsoikital manuscripts. 


Elgin had tore from ihe Parthenon? 
The other half is in Greece. 

When the late Melina Mercouri, 
then the Greek minister of culture, 
launched the campaign for the re- 
turn of the Elgin Marbles, the cry 
was raised that it would set a prece- 
dent that would threaten to empty 
world museums. She again and 
a gain emphasized that museums ev- 
erywhere must be preserved and 
protected; that Greece was asking 
for the return of something unique, 
part of a monument, part of a whole. 

As to the validity of the acquisi- 
tion, Lord Elgin's stated intention 
was to have drawings and molds 
made of the marbles. Once in 
Greece, his appetite became much 
more voracious. He was the first 
British ambassador appointed to the 
Ottoman court. He was more than 
welcome, since Britain and Turkey 
were allied against Napoleon. It 
cann ot be denied that the influence 
of his official position enabled him 
to receive the following permission 
from the Turkish empire: 

“That the artists meet no opposi- 
tion in walking, viewing, contemplat- 
ing the pictures and buildings they 
may wish to design or copy: or in 
fixing scaffolding around the ancient 
temple; or in modeling with chalk or 


Not Much for Them to Do , 
So Keep Them in School 


By Joel Achenbach 


gypsum the said ornaments and visi- 
ble figures; or in excavating, when 
they find it necessary, in search of 
inscriptions among the rubbish. Nor 
hinder them from taking away any 
pieces of stone with inscriptions ana 
figures. Particularly as there is no 
harm in the said buildings thus being 
viewed, contemplated and drawn." 

With what wildest license could 
this text be interpreted as permitting 
the devastation of the finest and pur- 
est Greek creation? Truly, in this dif- 
ferent world, amends must be made. 

JULES D ASS IN. 

Athens. 

A Hoarder Is Nota r Nut’ 

Peter, one of the characters in Con- 
nie Briscoe’s novel “Sisters & Lovers" 
( u Playing the Dating Game in Wash- 
ington, ” IHT, July 28) is not a “nut." 
He suffers from obsessive compulsive 
disorder and is a hoarder. About 2 to 
3 percent of people suffer from obses- 
sive compulsive disorder, and of 
these about 18 percent are hoarders. 
Most hoarders, and their families, 
live out their dramas in secret. But 
nowadays, people with obsessive 
compulsive discord can control it. 

NIKOS RAPT1S. 

HaJandri, Greece. 


W ASHINGTON — Why do we 
make kids go to school for 
what seems like hundreds of years 
before they’re allowed io become 
real people? 

You’ve heard of higher educa- 
tion? The real trend in America is 
toward longer education. Kids start 
school sooner and finish later. For- 
mal preschool, complete with tests 

MEANWHILE 

and admissions requirements, starts 
at the age of 4. Fourteen years or so 
later the student can expect to receive 
a high school diploma, a credential 
that by itself will enable the student 
to enter the lower middle class. 

That is why three out of five stu- 
dents with high school diplomas keep 
going to school even longer, so the 3 ’ 
can get a college degree that will 
enable them to receive well-written 
rejection letters on classy corporate 
stationery. Now more and more are 
gening postgraduate degrees. By the 
time you actually enter the job mar- 
ket, senescence is setting in. 

“We’re creating a credential-driv- 
en society, in which the way you 
gain mobitiiy is to have a creden- 
tial,” complains Ernest Boyer, presi- 
dent of the Carnegie Foundation for 
the Advancement of Teaching. 

Mr. Boyer says that soon it will be 
common for people to spend 30 
years of their life in school. At the 
same time, kids are becoming bio- 
logically mature at a younger age 
than ever before. 

“Physiologically they are becom- 
ing more and more adult even as we 
keep them institutionalized in this 
childlike institution," Mr. Boyer says. 
Why does this system exist? 

To some extent we are just ware- 
housing young people. There aren't 
many jobs for teenagers. Indeed, we 
have invented this whole concept of 
“adolescence” as a way of pushing 
back adulthood. School, Mr. Boyer 
says, has “a custodial function." 

Michael Kirst, a professor of edu- 
cation at Stanford, says. “We need to 
use the schools as an aging vat." 

Mr. Kirst says that longer educa- 


tion is driven by market forces. A lot 
of jobs don’t necessitate that some- 
one have a college-level education, 
but the bosses require it anyway. 
"It’s a measure of persistence,” he' 
says. “It’s a character iraiL If you 
can slog through all those years, 
you’re the kind that can slog 
through my workplace." 

The origin of mass education was 
a noble enterprise of the late 19th 
century. Before then, only elites had 
much formal education. 

America's place as an economic 
superpower is partly the result of 
the early emphasis on educating 
everyone. No country sends as 
many of its students to college. 
Many European nations send fewer 
than half as many of their students 
on to college as the United States 
does. Mr. Kirst points out that 
America is particularly advanced 
in educating women. One out of 
four 24-year-old women in the 
United States has a degree from a 
four-year college or university; in 
Japan only one out of eight women 
have such a degree. 

You always hear that America has 
a terrible educational system and 
second-rate students. It is not re- 
motely Hue. This country's educa- 
tional system is the envy of the 
world. America has more smart stu- 
dents than anyone else. It also has 
a lot of underachievers. (It is not 
clear why; but other societies tend to 
be more homogenized and don’t 
have as great a gap between the 
advantaged and disadvantaged.) 

Now. as you students out there 
prepare your essays on How I 
Nearly Became Brain Dead On My 
Summer Vacation, here’s a ques- 
tion for you: Why is there summer 
vacation? Normal human beings 
work all year. Adulthood is an end- 
less grind. Why do you snotty kids 
get this cushy summer gig? 

Simple: School sticks to tradition, 
and traditionally we all worked on 
farms. As late 'as 1900 about 80 
percent of Americans still lived on 
farms. Students took the entire sum- 
mer off to tend the fields. 

It sounds almost as brutal as camp. 

The Washington Post. 


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Page 6 


INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


A Plague of Locusts, Lured by Big City Lights (Poor Things) 


By Molly Moore 

Washington Post Sm-m r 

NEW DELHI — The firet evi- 
dence of the invasion was the crunch- 
ing sound beneath Vinoo Samuel’s 
motorcycle wheels. Then came the 
sung of tiny bodies hitting his face. 
Within minutes, he was surrounded. 

"They flew in hordes,” said Mr. 
Samuel, 30, who witnessed the inva- 
sion of the grasshoppers while driv- 
ing home from his job as a copywriter 
at an advertising agency. “People 
panicked. They were hopping 
around, brushing them off. They cov- 
ered the windshields of the cars." 

Hundreds of thousands of them 
rose from their usual habitat in the 
marshes around the Yamuna River 
last week and headed for the city 
lights. 

Evening rush-hour traffic stopped 
dead for two hours on ihe Nizamud- 
din Bridge as soon as the street lights 
blinked on. Hie green-and-brown 


grasshoppers slipped through the 
wide cracks in many Delhi window- 
sills, drawn to the lamps inside. Chil- 
dren fled the clouds of insects that 
settled in city parks. City gardeners 
fretted as the' hoppers began devour- 
ing basil bushes and flowering 
hedges, and street sweepers scooped 
them up by die basketful and hauled 
them away from ceremonial grounds. 

When Mr. Samuel arrival home 
after his harrowing ride, he found the 
door to his apartment coated with 
the critters. 

The newspaper headlines read like 
the titles of horror flicks: “Grasshop- 
pers invade Delhi" read a banner in 
the Pioneer. “Giant grasshopper in- 
vasion may last for a year” warned 
Asian Age. 

But these are not die locusts of 
biblical lore, nor are they the crop- 
devouring locusts Lhat annually as- 
sault the farmlands of Pakistan and 
Rajasthan. 


"These poor little things," said In- 
deijit Singh Malhi, an entomologist 
in the plant protection unit of the 
Agriculture Ministry. “They are ai- 

'It’s nothing 
compared to the locusts 
at home in the 
village. There are so 
many they block out 
the sun. 9 

Guraam Singh, a rathe of 
India's Punjab region 


tracted to light — that is why they are 
getting into houses and flats." 

Not since 1975 has Delhi seen such 
a massive infiltration of grasshop- 
pers. Usually they are content to 


munch the marsh grasses along the 
banks of the Yamuna and Hindon 
rivers on the outskirts of Delhi, 
whore they emerge during the sum- 
mer monsoon. 

This year, however, the monsoon 
has been longer and wetter than usu- 
al More rain means more grasshop- 
pers, and that means more grazing 
grounds. 

According to Mr. Malhi, they 
spilled into the alien “concrete jun- 
gles of Delhi," where they were 
promptly smashed by the thousands 
beneath the wheels of vehicles. 

“They were all over the road,” said 
Ishwar Singh, head constable on the 
evening watch at the Nizamuddin 
Bridge in New DeUu. "They came 
and attacked the drivers of the two- 
w heelers on the face and hit them in 
the eyes. I’ve never seen anything like 
it." 

Guraam Singh, a cab driver, was 
napping on a rope cot beneath a tree 


Nigerian Oil Production 
Is Said to Remain Strong 


Reuter: 

LONDON — Nigerian crude 
oil production has stabilized at 
about 1.4 million to 1.5 million 
barrels a day, only about 
400,000 barrels below the coun- 
try’s average output despite u 
prolonged oil workers' strike, 
industry sources say. 

The sources, who work for 
Western oil companies operat- 
ing in Nigeria, said only the 
country’s two largest oil sys- 
tems, Forcados ana Bonny, op- 
erated by the Royal Dutch- 
/Shell Group, remained 
noticeably affected by the 
strike. Both were subject to sab- 
otage by striking workers, the 
sources said. 

But exports of the high-quali- 
ty crude oil, heading mostly to 
the United States and Western 
Europe, have been barely af- 


fected by the pro-democracy 
walkout, with loading delays of 
a few days. 

On Monday, Labor Minister 
Samuel Ogbedmudia said his 
government was taking serious- 
ly union threats of sabotage. He 
said appointed administrators 
would take over union offices 
and assets, examine accounts 
and organize elections for new 
union officials. 

Oil workers have been on 
strike since July 4, d eman ding 
the release and installation to 
office of Moshood K.O. Abiola, 
who claims that he was unfairly 
denied the presidency after 
elections last year. Mr. Abiola’s 
treason trial failed to resume as 
scheduled on Tuesday. It was 
unclear why, nor was it known 
when it would resume. 


FRAUD: Trade Thrives in Nigeria 



a this cab stand when he was sudden- 
ly awakened by grasshoppers falling 
from the branches. 

"But, it’s nothing compared to the 
locusts at home in the village," said 
Mr. Singh, a native of India's Punjab 
breadbasket “There are so many 
they block out the sun." 

Still experts warn that the grass- 
hoppers have moved into the city 
during their prime egg-laying cycle. 
“Next year, because of all toe eggs 
that have been laid this year, they 
may start hatching profusely,” Mr. 
Malhi said. 

But a more likely scenario, he said, 
is that faced with concrete buddings, 
and paved roads instead of soft 
marshy land, “these poor little things 
would not be able to lay any eggs and 
they would just die." 

For this year, the grasshopper’s life 
cycle should come to an end some- 
time iruhe next week, he said, ending 
the siege. 


* f; -j* . 


Smithsonian Plans 

Equal Time for U.S. 

Tn A-Bomb Display 


ByKenRingte 


rrtamngtv" * — - ~ • — _ . 

WASHINGTON — Trying 
to defuse a mounting contro- 
versy over its planned exhibi- 
tion on the atomic bombingof 
Japan, the Smithsonian Institu- 
tion announced that it will 
be accompanied by a separate 
exhibition about how Ameri- 
cans experienced World War II. 
. The action comes amid in- 
creasing criticism of the atom 
bomb exhibition, which veter- 
ans groups, and others charge 


" §&■ 
■p4k 

■ 

'■■tk 


l+t* 


pictures the Japanese as need- 
less victims in a war of Ameri- 
can racism and vengeance. 

Critics- say the exhibition 
should plate greater emphasis 
on the dropping of the bomb on 
Japan to end the war without, an 
invasion of the Japanese main- 
land,- which they say would 
have cost hundreds of thou- 
sands more lives on both sides. 

Curators at the Smithsoni- 
an's National Air and Space 
Museum, have revised the script 
several times in an effort to de- 
flect the criticism. Two-dozen 
members of Congress wrote the 
Sm i*fr prtnian secretary, Robert 


W -w 

vJ. \ £s^* - *‘r— • .» — *.>. 


Continued from Page 1 

ly on forged government or cor- 
poration letterheads to busi- 
nesses and individuals in a mar- 
ket stretching from South 
Dakota to Ulan Bator. 

Generally, the frauds prom- 
ise big money through bogus 
government contracts, real es- 
tate purchases, merchandise or- 
ders, unclaimed inheritances 
and, lately, even promises of 
reimbursements to people who 
have already been defrauded — 
tiie double whammy. 

’ The victim becomes hooked 
on the lure of millions and be- 
gins sending the perpetrators 
thousands of dollars in "taxes" 
and “legal fees" to free up the 
nonexistent money in Nigeria. 

“It's kind of like gambling." 
said one Western diplomat. 
“You get in so deep you keep 
putting money in to get some- 
thing out of it" 

George Davis, a retired Tex- 
as oil engineer, is a typical vic- 
tim. Late last year, be received a 
letter from a phony Nigerian 
company ordering SI 5 million 
in industrial hardware from his 
business, International Equip- 
ment, which he had set up after 
retirement. 

Mr. Davis, 67, a disabled vet- 
eran, envisioned a sizable prof- 
it Instead, he ended up filing 
for bankruptcy after sending at 
least $70,000 in “fees" and nev- 
er seeing a penny of the prom- 
ised millions. 

“I guess I just have to start 
over." he said. “No use in look- 
ing back." 

In many or the scams. Nigeri- 
ans manage to persuade busi- 
ness people to come to Nigeria 
to work out the details of their 
contracts. Often they are 
robbed shortly after arrival and 
some have been killed. One 
American was burned to death 
and his body dumped in front 
of the Lagos Sheraton. 

The citizens' services section 
of the UJS. Embassy frequently 


escorts Americans out of Nige- 
ria after they have gotten deep 
enough into the scams to be 
frightened by their business as- 
sociates. 

The airport in Lagos is rea- 
son enough to be afraid. The 
United States last year banned 
direct flights here because of lax 
security at the airport One for- 
eigner suffered a heart attack 
when he arrived to discover bul- 
lets flying during an armed rob- 
bery. 

The U.S. Stale Department 
has issued a dozen “scam indi- 
cators” for Americans tempted 
to do business in Nigeria. They 
range from “any offer of a sub- 
stantial percentage of a large 
sum of money to be transferred 
into your account in return for 
your ‘discretion’” to “letters 
claiming the soliciting party has 
personal ties to high Nigerian 
officials" to the rather plaintive 
“any deal that seems too good 
to be true." 

According to a diplomat the 
Nigerian government inten- 
tionally or not encourages the 
fraud by failing to prosecute 
offenders. “A couple of good 
cases would make a big differ- 
ence," he said. 

One Justice Ministry official 
while acknowledging that ad- 
vanced-fee fraud was a problem 
in Nigeria, said foreigners who 
became involved in the scams 
were to blame as well In many 
cases, this is true. The authors 
of scam letters often claim their 
proposals stem from Ql-gotien 
money. 

“When some of them were 
told that the contract was in- 
flated, anyone with sense would 
know that this was illegal but 
still they came to Nigeria," said 
the official. “When they lost 
money, they complained. If 
they didn’t lose money, they 
wouldn't complain, would 
they? Many of them are fraud- 
sters themselves who came to 
Nigeria to collect money they 
never earned." 




T ^ 

I 


Hmv VcrdyMpocc Fimn-hcae 

Rwandan ref ugees waiting for permission from Zairian authorities Tuesday as they attempt to cross (be border at Goma. 

Kigali to Take Over Southwest Rwanda Haven 


The Associated Press 

KIGALI, Rwanda — The Tutsi-led gov- 
ernment of Rwanda proposed Tuesday 
slowly extending its control over the for- 
mer French protection zone in the south- 
west, where more than I million Hutu 
sought refuge. 

French troops completed their with- 
drawal from the zone Aug. 22, handing it 
over to United Nations peacekeeping 


troops. UN officials and aid workers had 
feared the withdrawal would prompt Hutu 
in the zone to panic and flee into Zaire. 

Bat a second great exodus of Rwandans 
into Zaire did not materialize, as only 
about 70.000 Hutu fled after the French 
withdrew. Now the government has un- 
veiled a plan to take control of the region. 

Shaharyar Khan, the UN special repre- 


sentative for Rwanda, said Tuesday the 
United Nations would, help the govern- 
ment re-establish civilian authority in the 
area over the next few days. Government 
security and armed forces would be phased 
in afterwards, the representative said. 

Rwanda Patriotic Front rebels defeated 
the former government military forces in 
July and established a government in Ki- 
gali. 


. Continued from Page 1 

refugee status to some Cubans 
even if they do not meet . the 
strict standards for asylum. 

Under existing immigration 
rules, the parents, children, 
spouses and siblings of natural- 
ized Americans can qualify for 
visas, but cousins cannot. 

According to several offi- 
cials. Attorney General Janet 
' Reno plans to use her emcagen- 
cy powers under the immigra- 
tion laws to raise the number of 
Cubans admitted each year to 
the- legal ceiling. . ■ 

To help reach the eating, die 
is also eroected to allow stupe 
oraU.of the 19,700 Cabans who 
are On a waiting list for visas to 
jump the tine and reodve visas 
this-year. Some of those Cu- 
bans,, many of them brothers 
and ..sisters of Cuban- Ameri- 
cans^have been waiting for vi- 
sas ftftr 10 years. . 

Several administration offi- 
cials said they hoped that this 
new-off er would win Mr. Cas- 
tro’sapproval and put an end to 
the -refugee crisis. The Coast 
Guard has jacked up more than 
18,000 Cubans in me Straits of 
Florida since Aug. 1. 


MERGER: New Defense Giant Japan Satellite in Trouble ULSTER: Truce by IRA Awaited 


Continued from Page 1 

such as information systems, 
space launchers and energy. 

"These are Darwinian times 
in our industry, and the failure 
to change is the failure to sur- 
vive,” said Norman R. Augus- 
tine. chairman of Martin Mari- 
etta, who is to become president 
of the new company. The Lock- 
heed chairman. Daniel M. Tel- 
lep, who said he initiated the 
merger with a telephone call six 
months ago. will become its 
chairman. 

Mr. Augustine, four years the 
younger and a former undersec- 
retary of defense who has been 
the leading commercial propo- 
nent of the defense consolida- 
tion wave, will succeed Mr. Tel- 
lep, now 62, when the current 
Lockheed chairman retires at 
age 65 or before. Both are engi- 
neers and defense industry vet- 
erans. 

But the most important ini- 
tiator or the merger was the 
Pentagon, whose procurement 
spending has fallen 70 percent, 
in inflation-adjusted terms, 
since the peak years of the Rea- 
gan military buildup. 


Eighteen months ago, Les 
Asp in, then the defense secre- 
tary, completed a review for 
President Bill Clinton and 
called in the chiefs of the Penta- 
gon’s 20 largest contractors for 
dinner. They were told in no 
uncertain terms there were too 
many of them — five aircraft 
makers and five shipbuilders, 
for example, when the Penta- 
gon felt two would be enough. 

As Mr. Augustine recalled, 
many of the company leaders 
leaving the dinner told then- 
competitors, “These are going 
to be tough times for you. ” 

He and Mr. Tellep were de- 
termined to be among the survi- 
vors, by acquiring parts of other 
companies as the industry con- 
solidated. 

Mr. Augustine said competi- 
tive bidding had raised the cost 
of acquisitions from 25 cents 
for every SI of a company’s 
sales five years ago to 65 cents 
now-. His bid to take over the 
ailing Grumman Corp- failed 
when he refused to match Nor- 
throp Aviation’s high bid. Since 
then, be has turned to friendly 
mergers. This one took six 
months to arrange. 


TOKYO — Japan's experimental satellite, launched by its 
homegrown H-2 rocket, appeared to be in clanger Tuesday of 
becoming space junk after developing a serious problem for 
the second consecutive day. 

A spokeswoman for the National Space Development 
Agency said insufficient thrust forced engineers to suspend 
fud injection minutes after a first firing of the satellite's 


liquid-fuel engine early Tuesday. 
The Mamichi newspaper said 


The Mamichi newspaper said that controllers would be 
unable to adjust a faulty valve controlling fuel injection from 
the ground and that Japan was poised to lose the 41.5 billion 
yen (5415 million) spent on malting the satellite. 

The satellite was planned to settle in orbit 36,000 kilome- 
ters (22*500 miles) above the equator and cany out experi- 
ments on communications between satellites and moving 
objects on Earth. 


SLAVES: Japan to Offer Amends 


Continued from Phge 1 

though the funding for women's 
craters is welcome, they say, the 
problem is lhat Japan is trying 
to avoid legal responsibility for 
its actions by offering only sym- 
bolic compensation to victim- 
ized women, whose numbers 
are rapidly dwindling. 

“A Reparations Washout," 
screamed a headline in the 
newspaper Asahi. Mr. Mur- 


ayama apologized for Japan's 
wartime aggression as he visited 
the Philippines, Vietnam, Ma- 
laysia and- Singapore over the 
past eight days. But Prime Min- 
ister Mahathir bin Mohamad of 
Malaysia told Mr. Murayama 
to ease up. 

“I don't understand why Ja- 
pan keeps apologizing For what 


happened 

Mahathir 


thir said. 


years ago. 


: Continued from Page 1 
Catholic. The British govern- 
ment sought Tuesday to/cahn 
the fears of Protestant loyalists,, 
who favor continued union with 
mainland Britain, by having un- 
named spokesmen reassert that 
no concessions were given to 
the IRA. The cornerstone Of 
that policy is still that there can 
be ho change in the status of 
Ulster without the consent of 
the majority there, the spokes- 
men. said. 

But the reassurances did not 
sit easily with some Protestant 
leaders, who charged that they 
were being sold out Among 
them was the fiery Reverend 
Ian Paisley, who accused the 
govcmmait of “caving in” to 
Stun Fein and said that an 
ag r eem ent taken against the 
“democratic wish” of the peo- 
ple of Northern Ireland was “a 
recipe for civil war” there. 

An., extremist illegal loyalist 
group, the Ulster Freedom 
Figfrter s, winch has been assas- 
sinating Catholics, warned 
Monday night that it would not 
“tit back and allow ourselves to 
be coerced and persuaded into 
an all-Ireland.” 



On September 21st, the 1HT will publish the first in a 

two-part series of Special Reports on 

Infrastructure 
and Development 

Among the topics to be covered are: 

■ The link between infrastructure projects and living 
standards in Asia. 

■ China's Three Gorges dam, the worlds largest 
hydropower project. 

■ The S20 billion Hong Kong airport. 

■ Power plants, road building and other 
projects in Indonesia. 


An extra 1.Q0Q copies of the supplement 
wiS be distributed m Jakarta on October 17th 
at the World Infrastructure Forum - Asia 1994. 
to which the IHT has been appointed 
the Official Publication. 

For further information, please contact BfflMahder in Paris 
at (33-11 46 37 93 78. fax: f33-t.» 46375044. 

lieralOss^enbune 


INiiaHIlH IVl Iliflh 


SOCCER: Two Young Africans and an English Ghost Have a Rendezvous in the Shivery, Gray Industrial Notify 


Continued from Page 1 

relate to Albert. Masinza's fa- 
ther was a wages clerk at the 
mines; Radebe will send home 
the money from Leeds to a fam- 
ily of 24 in Soweto. 

They laugh a lot. They know 
their roots. They cannot have 
failed to see pictures in the Eng- 
lish press this summer of Nel- 
son Mandela, now president of 


South Africa, dad in the team- 
shirt of a Leeds rival Liverpool 
Mandela and his struggle to 
break the evil of racial discrimi- 
nation is their living history. Jo- 
banneson’s Cup Final against 
Liverpool lies on the memory 
of the president, and it was he 
who. during a brief visit by Liv- 
erpool to play in Johannesburg, 
requested tire red shirt and a 
photograph with the players. 


ItcraibSSribunc 

1'M.iaii.v.M _j n. i. 

LIVING IN THE U.S.? 
Now Printed in 
NewVDrk 
For Same Day 
Delivery ev Key Cities 

TO SUBSCRIBE. CALL 

1 - 800-882 2884 

(IN NEW YORK. CAU 212-752-3890) 


Hero worship knows no bar- 
rier. It is a strange fact of life 
Lhat even the ^reat fighters of 
history, politicians and busi- 
nessmen and soldiers, harbor a 
boyhood dream of running 
down the wing and creating or 
scoring the winning goal 

Masinga and Radebe, 
plucked out of the townships 
for the relative pittance of 
$750,000 the pair, are living the 
dream. “For us, players like 
McAllister and Strachan are 
legends,” says Masinga, refer- 
ring to Leeds United play-mak- 
ers Gary McAllister and Gor- 
don Strachan. 

“We know them from televi- 
sion. But now they encourage 
us all the time, they tril ns to 
keep our heads up, not to bow 
down. We are trying.” 

You bet Masinga is. He 
scored a headed goal against 
Chelsea last Saturday that 
raised a stadium of northern 
English folk to chant “Waltzing 
Masinga." His elusive rtxming, 
his movement and balance, re- 
minded old-timers of Johanne- 


Mastnea has cornea long way 
from Marne] odi Sundowns, 
where he scored goals almost as 
freely as a bird flies. Radebe, 
his pal and traveling compan- 
ion, has yet to obtain the work 
permit that completes his jour- 
ney from the defense of Kaiser 
Chiefs to the Leeds side. 

Whatever they achieve in 
Leeds' colors, the coach of their 
new team believes the two 
young Africans already are 
helping reinvigorate a Leeds 
team that bad, perhaps, grown a 
little stale, a trifle burdened by 
recent successes. 

“These two have grown \q> in 
the son of environment tim 
players in this country were 
growing up in 60 or 70 years 
ago” said coach Howard Wil- 
kinson. “They bring a new di- 
mension to the way we see 
things.” 

A new, or an old dimension? 
The former Leeds colleagues Of 
Johann eson will never forget 
the timidity with which became 
among them. Johanneson came 
on the recommendation of a 
school teacher who saw him 


kick a ball for the first time 
when he was 1 8 and marveled at 
the uninhibited, innocent way 
young Albert played. On day 
one at Leeds’ Elland Road 
ground, Johanneson hung back 
after^ train ing, scared beyond 
credibility at the thought of en- 
tming the white man’s commu- 

nnlnqfn TTmo ■ 


threw him into their bath, tried 
to throw him into their tra m 
pooL 

They knew from the start 
what he could do. He could fly 
town the left flank, cross the 
baR and enable Jack Chariton, 
nowadays thecoacfa to Ireland’s 
national team, to head a goal . 

JHe could bemuse seasoned 
professionals with his tricks, 
and one goal he scored against 
Newcastle United on Easter 
Monday 1964 is folk lore. “Al- 
bert? By eck, tha’s seen nowt 
-better than the way. he ride- 
stc PF«d three defenders, 
watched the goalie canting, and 
kicked the ban past him.” - 

He was dubbed The Black 
Matthews, the highest accolade 
of postwar Eng l ish compari- 


sons to Stanley Matthews, 
whose wingcraft earned * 
knighthood. Sir Stanley in time 
was to live in South Africa; * 
world-famed footballer hand* 
somdy paid to teach the kids as 
apartheid faded away. . 

It was mostly black kids be- 
cause, though theSouth Afri- 
can blacks never put up Ha me rs % 
to whites who wore humM®. 
enough — and farsighted 
enaagti ~ to join in tharspbit. 
many whites segregated off into 

Ltooentably, Albert jJpta* . 
neson foand racists in England 
toft He could be put off 
game ^by wle chants at 

Everton, he.couhfS? 


tow®™, by hard fririUrng full- 
backs. , . 

The newcomers from k&BBr 
rasgurgmay be madertf stop* 
They are bom ©f a MCO?" 
to** g rvat cause to hope thaiffi 
sport as in every thing else, they 

’*? rse toyww #*■ 
K ^ will nevepjifiy 
“Kwthe struggle that wracked 
A tocrt Johanneson. . 

" ** h&B * a thtatftfTim n *>- .. 


McC. Adams, on Aug. 10, how- 
ever protesting that “examples 

and imbalance of the «hib« 
are many” still and that Air 
and Space appeared to be dig- 
ging mite heels to dtfend an 
^defensible position rather 
than working to make the pre- 
sentation more historically ac- 
curate. . . . 

The original exhibition. The 
Last Act The Atomic B<mib 
and the End of Worid War II, 
is scheduled to open in about 
nin e months, in time for the 
50th anniversary of the bomb- 
ings of Hiroshima and Nagasa- 
ki. Monday's announcement 
said visitors to “Last Act” will 
now pass through a 4,uuu- 
sauare-foot exhibition tenta- 
tively titled “The War in the 
Pacific: An American Perspec- 
tive,” focusing on military en- 
gagements from Japan’s first at- 
tacks on in 1937 until the 
capture of Okinawa in June 
1945. 

The centerpiece of “Last 
Act” will be the restored for- 
ward fuselage erf the Enola Gay, 
the B-29 that dropped the fust 
atom bomb on Hiroshima on 
Aug. 6, 1945. 


CUBA: U.S. to Offer to Relax Rules 


"We thin if the Cubans need 
to control illegal departures and 
we need to facilitate legal de- 
partures,” a White House offi- 
cial said. 

Mr. Castro has kmg pushed 
Washington to expand legal im- 
migration from Cuba, partly 
because it would help serve as a 
safety valve for discontented 
Cnhans to leave the island. 

In 1984, the Reagan adminis- 
tration agreed to grant visas to 
un to 20.000 Cubans a year. 
Under i m migration laws that 
went into effect in 1990, that 
ceating has dimbed to 27,845. 

“We are going to recommit to 
that number and be more pre- 
cise about how to get to those 
figures,^ a senior administra- 
tion-official, said. 

> The officials said that Ms. 
Reno and Doris Meissner, the 
omnntissiQner of the Immigrar 
tion and Naturalization Ser- 
vice, were developing addition- 
al ideas to be presented at a 
White House meeting on bow 
best to accomplish this. 

.The United States and Cuba 
agreed to meet on immigration 
after’ c the ^Hinton administra- 
tion requested the talks to re- 
solve the currrat crisis. 


The news agency Reuters 
quoted the White House press 
secretary. Dee Dee Myers, as 
having said that the United 
States was considering a pack- 
age of aid toNorthernlrelandif 
a cease-fire was successful 
The Irish prime minister. Al- 
beit Reynolds, said that a his- 
toric opportunity was present. 
He called it “the best opportu- 
nity since partition” seven de- 
cades ago. 

' Much of Tuesday’s specula- 
tion cratered on the critical 
question of not just whether a. 
cease-fire would be announced 
but for how long. Some craft 
mentators suggested that the 
IRA might publicly call a halt 
to the vialrace, which, an:aS 
sides, has claimed 3,168 fives 
over the past 25 years. ; 

In December, the British and 
Irish governments pledged that 
Sinn Fein would have a place si 
the negotiating table if it to- a 
nounced violence. Prime MmES-"* 
ter John Mtgor said that -a - 
cease-fire of three months 
would open the door to taftsT ' 
In that ccautext, a strong IRA- . 
statement giving up viofcof 0 
would put cohaderable^ ^ pres- 
sure on the British gjovemmmL - 








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International Herald Tribune 
Wednesday, August 31, 1994"' 
Page 7 ' 


Juliette Lewis and Woody Harretson in Oliver Stone's "Natural Bom Killers, " which will he shown in Venice. 


By Roderick 
Conway Morris 

■International Herald Tribune 


V ENICE — The run-up 
to this year’s Venice 
Film Festival got off 
to a good start when 
Umberto Curi, an obscure 
Marxist philosopher and mem- 
ber of the Council of the Bien- 
nale (which organizes the annu- 
al film event and the biennial 
art show), demanded that the 
Peruvian writer and unsuccess- 
ful presidential candidate 
Mario Vargas Llosa be bounced 
off the jury on the ground that 
his politics are rightist ' 
Whether the spritely 74-. 
year-old festival director, Gtllo 
Pontecorvo— whose ^Baftie of 
Algiers” w6tf die -Gbidea^iion 
in 1966 ^-.had &jly Kgis&dl 
Vargas Dosa’s change of politi- 
cal complexion is anybody’s, 
guess. But Pontecorvo, still seen 
as a man of the left, has chival- 
rously stock by his appointee. 

Curi said that he had “ve- 
toed” the Peruvian’s selection 
some time ago — only to be 
rebuffed by Giaohrigi Rondi, 
the Biennale’s president. Rondi 
maintained that no such .veto 
exists and that Cnri “was con- 


fusing the Biennale with the 
UN Security Council" 

Italians of almost every polit- 
ical hue are united in agreeing 
that the 99-year-old Biennale's 
antiquated and cumbersome 
ad mini s tr ative structure is ripe 
far reform. And the Italian 
Film Clitics’ Union will protest 
by holding a parallel film festi- 
val with a different list of mov- 
ies at the Astra cinema on the 
lido. The union has the sup- 
port of Venice’s municipal 
council, which has often been at 
loggerheads with the autono- 
mous Biennale, regarding it as a 
kind of troublesome; unman- 
ageable cuckoo , .taking up an 
inordinate amount of space in 
the city’s cultural nest. 

Distant thunder .was heard, 
meanwhile, from Franco Zeffir- 
cUjathis villa in Positano. sug- 
gesting', that the Biennale be 
“razed to the ground and start- 
ed again from zero." 

That Pontecorvo should be 
back at the festival's helm for 
the thud time was unexpected, 
since last year he seemed deter- 


er job — directing films.” He 
changed his mind, he explained, 
to press forward with his Film 
Directors’ World Union, an in- 
ternational body designed pro- 


changed his mind, he explained, 
to press forward with his Film 


BOOKS 


HOUSE OF SPLENDID 
ISOLATION 

By Edna O'Brien. 232 pages. 
$21. Farrar Straus .Giroux. 

Reviewed by 
Linda Barrett Osborne 

E dna o’brien’S isth 

book is a moving portrait 
of the continuing drama that is 
Ireland, where history plays as 
tragedy, ordinary lives are hos- 
tage to timdess passions and, as 
WJL Yeats wrote, “the sad, the 
lonely, and the insatiable” 
dwell 

Her story, set in the present, 
brings together Josie, an elderly 
recluse, and McGreevy, an IRA 
terrorist on the run. The two 
take lie reader beyond the stan- 
dard news accounts of bomb- 
ings and killings into a world 
that is personal and vivid. Yet 


Josie and McGreevy cannot es- 
cape politics or complex moral 
choices. Their fate, as Yeats 
also wrote of all the Irish, is to 
live between **Two eterni- 
ties/That of race and that of 
soul” 

Just bade from a nursing 
home, Josie inhabits a crum- 
bling estate in the Iridi country- 
side. She is haunted by memo- 
ries of a marriage to an earthy, 
hard-drinking horse breeder 
who was baffled by her distaste 
for his rough manners and sexu- 
ality, and of her doomed attrac- 
tion to a priest. McGreevy, 
from Northern Ireland, is pur- 
sued by the Guards, the Irish 
police. He takes refuge in Jo- 
se’s isolated house to plan an- 
other attack aimed at driving 
tire British oat of Ireland. 

Josie is understandably 
shocked and frightened by his 
presence; McGreevy remains 


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4 POLITICALLY CORRECT 

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8 THE HIDDEN CITY, by Da-' 

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11 EVERYTHING TO GAIN, 

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mote filmmakers'* freedom of 
expression, which was formally 
launched in Venice last year. 
“When it seemed probable' that 
somebody would be elected 
who was not much interested in 
it, I agreed to stay on," Ponte- 
corvo said. 

The hot favorite to replace 
Pontecorvo had been Nanni 
Moretti, whose “Caro Diario" 
(Dear Diary) won the best di- 
rector prize at the Cannes film 
festival in May — a maverick 
who. indeed, does not appear to 
be the ardent committee type. 

V ENICE is suffering, as 
Cannes did, from a 
dearth of finish ed pro- 
ductions by big-name 
directors, and many of the films 
chosen by Pontecorvo from the 
300 he viewed, are by new direc- 
tors. “Wyatt Earp" was to be 
shown, but has been withdrawn 
by Warner Brothers, since nei- 
ther the star, Kevin Costner, nor 
the director, Lawrence Kasdan, 
was available to come to Venice. 
But Mike Nichols’s “Wolf," with 
Jack Nicholson and Michelle 
Pfeiffer, and Woody Allen’s ea- 
gerly awaited “Bullets Over 
Broadway” will be screened, and 
Allen will be in town. 

Promising among the in- 
competition films are “The Life 


self-contained, ironic and quiet- 
ly polite. They engage in a bat- 
tle of the wills. She angrily won- 
ders what motivates him — “the 
land, the yoke of history, or ... 
rage in the blood?" He desires 
“justice for alL Peace. Personal 
identity. Racial identity.” She 
maintains, “We can have that 
whether we’re united or not.” 

Their words cut to the heart 
of Ireland's dilemma: Is it one 
country or two? Is violence or 
law and order the answer? Are 
her countrymen bound to each 
other by a sympathy stronger 
than political differences? 

O’Brien’s novel reveals an 
odd sympathy between the pro- 
tagonists. Despite their differ- 
ences, they are both solitary 
and indomitable. Each not only 
comes to respect the other’s 
strength, but to draw out long 
dormant qualities in the other. 

McGreevy begins to care for 
Josie, protecting her at tne risk 
of his own safety. Josie. in turn, 
feels alive in the presence of 
danger and in hta" growing at- 
tachment to this strangely 
thoughtful intruder. 

The sheer number of charac- 
ters, however, distracts from a 
story which is compelling sun- 
ply because Josie and 
McGreevy themselves suffi- 
ciently embody much of what 
the rest feel and say. 

There is one other character 
who does stand out: the Child 
who speaks in the first and last 
sections of the weighty legacy of 
Irish hikoiy. where the earth is 
"SO old and haiimedsohmigry 

(always) dose to him whoen he 
kills " The Child, who is Josie s 
aborted child, seems to become 

Ireland itself, the paradox of a 

voice which can neither be bora 
nor silenced. And the. titles 
house of splendid isolation be- 
comes more than a place where 
two solitary people : meet .It too 
is Ireland, looking inward, end- 
lesslv trying to reconcile its 
wars, its loyalties and its 
dreams. _____ 

Unda Barren Osborne, a free- 
lance reviewer living in Washing- 
ton, wrote this for The H asking- 
ton Post. 


and Extraordinary Adventures 
of Private Ivan Chonkin*' by 
Jiri MenzeL whose “Closely 
Watched Trains” was perhaps 
the most memorable film to 
emerge from Dubcek's Prague 
Spring, and “Somebody to 
Love” by Alexandre Rockwell, 
whose “In the Soup" was en- 
thusiastically received here two 
years ago. 

Pontecorvo expressed his dis- 
may at the large number of 
films he had viewed this year 
that were based on violent 
themes. Given his dislike of vio- 
lence in cinema, it was surpris- 
ing that there were at least two 
extremely violent films in com- 
petition: Oliver Stone's Bonnie 
and CJydish “Natural Born 
Killers" and Marco Risi's “II 
Branco” {The Gang), a horrific 
tale of the multiple rape of two 
German hitchhikers by a group 
of young men near Rome. 

“I think Stone's film is very 
useful — even if it is a film of 
extreme violence — because it 
is a direct assault on the vio- 
lence that is becoming a cancer 
infecting the media, especially 
television, all over the world,” 
Pontecorvo said. “ *11 Branco’ is 
a strong film, but not needlessly 
explicit, and certainly not in the 
least titillating. And, by holding 
up a muTor to the defects of our 
society, it may have the power 
make us get to know ourselves 
better and to avoid such defects 
in future.’ 

The principal novelty of this 
year’s festival is a special effects 
section, coinciding with a 
screening of the hugely success- 
ful “Forrest Gump," where die 
effects were used to show Tom 
Hanks apparently shaking 
hands with three presidents and 
meeting Elvis and John Len- 
non. 

But, ever the champion of an 
cinema, he added that this sec- 
tion would be end tied “For and 
Against," “because we directors 
— however much we may be 
enthusiastic about the possibili- 
ties of this extraordinary tech- 
nology offered to us — should 
be wary of allowing the whole 
of cinema being dehumanized 
and reduced to a kind of indus- 
trialized video-game.” 

Matty festival screenings on 
the Lido from Sept . 1 to 12 are 
open to the public. Others are 
shown in Venice; information at 
box office in Campo Sam 'An- 
gelo. or tel: (41) 524-1320. 


AMSTERDAM 


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Director’s Star Turn in ‘Henry V’ 


By Sheridan Morlev 

Imtmminnal Herald Tnhaic 


L ONDON — A decade 
ago Kenneth Branagh 
made his name at 
Stratford as "Henry 
V." The Royal Shakespeare 
Company is only now returning 
to the play, and the sura this 
time around are the director. 
Matthew Warchus. and the de- 
signer, Neil Warmington. Their 
idea is simple and dazzling; an 
Armistice Day “Henry V.” 
watched over by Tony Britton 
as Chorus in a 1914 greatcoat, 
and set on a field of Remem- 

BRITISH THEATER 

b ranee Day poppies that spring 
to blood-colored life as the bod" 
ies go down into death. 

Iain Glen is less than charis- 
matic in the title role, but the 
staging is forever alert, thought- 
ful and surprising. It goes for 
neither the jingoism of the war- 
rior-king from Olivier's movie, 
nor the sullen pacifism of the 
royal rebel from Branagh's. In- 
stead, W arch us suggests that this 
is a far more complex play, one 
in which issues of patriotism, 
cross-Channel politics, kingship, 
murder and betrayal are various- 
ly held up to the light of battle 
with no easy solutions. 

Britton pulls on a massive 
electric switch to open the show 
and snaps it off into darkness at 
the close, thereby suggesting i as 
did the Olivier movie) that we 
may be in a theater all Lhe time. 
But Warmingion's sets then 
open up into dazzling vistas of 
the fields of France, and as a 
cast of tremendous energy and 
versatility clambers over the 
battlefields- of Agincourt, 
Glen’s Henry ages rapidly from 
rabble-rouser to politician. His 
eve-of-battie soliloquy. “Upon 
the king," is rightly where this 
production comes together. 

Warchus gives equal time to 
those who, like Pistol and Fluei- 
len. doubt the cause and dis- 




M an hew Warchus s production of "Henry V.' 


trust the king's cal] to arms, and 
in Lhe end this “Henry V." un- 
cut at nearly four hours, is a 
memorable national march- 
past of ideals and compromises, 
engagements and burials. 

On the adjoining Swan stage. 
David Thacker has a new RSC 
“Corioianus” courageously set 
during Lhe French Revolution. 
Next year, presumably. “A Tale 
of Two Cities” set in Rome 
around the time of Caesar's as- 
sassination. But Thacker is too 
wary a director to let a gimmick 
go wrong and this “Coriola- 
nus" makes a certain amount of 
revolutionary sense, as a popu- 
lace scrabbles for corn while its 


leaders try to work out among 
themselves which one should be 
allowed to survive. 

Toby Stephens would have 
made a better Aufidius than 
Barry Lynch, but he still has 
some years and experience to go 
before he is ready for a title role 
he’s been thrown into rather too 
early for him, the play or us. 

Nevertheless, Thacker makes 
excellent use of the Swan's stage 
and galleries, wrapping the play 
around with an indecisive but 
rebellious mob. 

Caroline Blakiston is a lack- 
luster Volumnia, and Monica 
Dolan (an excellently feisty 
Princess of France in “Henry 


V”) is equally unmemorable as ■ 
Virgilia, none of which would ; 
much matter if Stephens could ! 
hold the stage with more au- 
thority. But we do get a wonder- 
ful collection of character ac- 
tors: Griffith Jones, Philip* 
Voss, Ewan Hooper. Lina! Haft 
and, perhaps best of all Colin 
George in a welcome return 
from 20 years or so of ru nnin g 
national theaters in Australia. 

Now that Terence Rattigan’s 
fortunes have rightly been re- 
stored — a third biography is 
out this year, as are new stage 
and screen versions of his 
“Browning Version" — it is 
good to welcome back “The 
Winslow Boy" (at the Globe) as 
well. This is the story of a small 
boy, or rather of the adults 
around him, and here as else- 
where Rattigan look his plot 
from court records. 

Fust produced a year after 
World War II, but set just before 
World War I. it is about the 
naval cadet falsely accused of 
stealing a 5-shilling postal order. 
The issue here is the refusal of 
the Admiralty to bend to com- 
mon law and have the case prop- 
erly examined, and Rattigan 
treats it as a test of England's 
morality. His somewhat smug 
conclusion is that a nation that, 
on the brink of war, can allow its 
House of Lords to spend an en- 
tire day debating Lhe innocence 
of a naval cadet has got its prior- 
ities just about right. 

But the characters are what 
most matter: Peter Barkworth 
as Lhe old, ailing father, risking 
the lives of all the rest of his 
family to establish his young- 
est’s innocence, Simon Wil- 
liams as the icy defense lawyer. 
Eve Matheson as the suffragette 
daughter, and Robin Hart and 
Ian Thompson as her two suit- 
ors all give performances of tre- 
mendous dignity. 

Though the drama creaks 
along at a snail’s pace it is still 
shot through with Rattigan’s 
weary faith in human nature. 


Sarajevo Skirmish in Edinburgh 


By Jonathan M. Ledgard 


E dinburgh — The 

Serbs of course were 
boasting of their 
friendship with the 
Bosnian filmmakers. “Oh yes,” 
one said upon sighting a Bosni- 
an filmmaker, “here comes a 
good friend of mine." But the 
Bosnian looked through him as 
if Lhere was nothing there. The 
Serb was left alone, his hand 
suspended. That scene said it 
all. Ripples of the Bosnian war 
had washed up even on the ele- 
gant and mirthful shores of the 
Edinburgh Festival. 

Choosing films for a discrimi- 
nating audience is never easy. 
Introduce tensions born of war 
and it becomes messier still The 
organizers of the film festival 
found out painfully that all films 
are political at some level espe- 
cially if they are Serbian. 

It began well enough. The ar- 
tistic bonds between Sarajevo 
and Edinburgh were strength- 
ened by the idea of taking the 
Edinburgh Film Festival to the 
last working movie house in Sa- 
rajevo in October. In return, 
Bosnians came to Edinburgh 
with films and a selection of 
breathtaking Minimalist art. 

Then the Bosnians learned 
that Lhe organizers planned to 
show Serbian movies as com- 
panion pieces to Bosnian films. 
When the Serbs arrived, unex- 
pectedly, the Bosnians protest- 
ed. “We are countries at war,” 
said Srdan Vuletic, whose fieiy 
fi lms were made under siege m 
Sarajevo. “It’s as if it was 1943 
and we were from Stalingrad 
and we’re supposed to be happy 
to have German films shown 
with our own.” 

Milan Knezevic’s documen- 
tary “Nikola Kavaja — A Hunt 
for Tito” is a hagiography of 
Kavaja, a Serb “patriot" who 


would undoubtedly be slaugh- 
tering Bosnians if the U. S. gov- 
ernment bad not already jailed 
him for terrorism. It was inept 
to select this film at ail, but to 
pair it with Sahin Sisic's “Planei 
Sarajevo" was worse. His deli- 
cate film was only 30 minutes 
long, Knevezic’s a bloated 92 
minutes. To the Bosnians it 
seemed that Sisic's film was to 
be no more than a trailer for 
Chetnik propaganda. 

Oleg Novkovic's 1993 fea- 
ture, “Say, Why Have You Left 
Me?" (“Kazi Zasto Me Ostavi") 
was billed as that rarest of mod- 
ern creations: a Serbian anti- 
war movie. For that reason 
alone it was worth showing. By 
the time Novkovic arrived the 
British press bad already placed 
him in the eye of the storm. He 
read with arched eyebrows 
what Srdan Vuletic had said to 
The Guardian about Serbs: “I 
would buy a Serb a cup of cof- 
fee if I had £1 million but 1 
would not stay in the same 
room as him.” ' 


Me?" could not be said to be 
radical The appendage “Serbi- 
an” to anti-war film does much 
to explain why it contained no 
clear condemnation of Greater 
Serbia or of the ability to see the 
Serbs as anything but victims. It 
evaporates when you compare 
it with the truly anti-war video 
films of 23-year-old Vuletic. He 
worked as a volunteer in a Sara- 
jevo hospital where his job was 
to bum amputated limbs. In his 
powerful short film, “I Burned 
Legs,” Vuletic describes the 
emptiness inside him and how 
discordant war is. “You expect 
everyone to pull together in 
war, but that's a lie. War smash- 
es everything to pieces." 

“Planet Sarajevo" is the work 
of a photographer, Sahin Sisic. 
A native of Sarajevo, Sisic made 
this masterpiece almost alone. 
Though shown to great acclaim 
abroad, the film has not played 
in Sarajevo yet. 

For several months Sisic 


filmed the movements of an old 
man as be stumbled about the 
broken city gathering scraps of 
food for stray cats and dogs. 
The old man did not know he 
was being filmed. 

“He died though. I'm not 
sure how. He never saw the; 
film.” “Planet Sarajevo" is 
about the stillness in war that 
Gausewitz described. A Bosni- 
an army general asked Sisic 
why he was wasting his time 
filming senile old men. 

“He said I should show 
young soldiers, you know, 
cleancut types, to give a better 
impression. I thought this was a 
terrible thing to say, almost fas- 
cist, as if the old men were not 
part of Bosnia. I said to him.- 
’How do you know what your 
soldiers will look like in 40 
years? 1 He smiled at that.” 

Jonathan M. Ledgard is a 
free-lance writer specializing in 
the Balkans. 


N ovkovic tried u> 

be stoical “I'm a 
new kind of South 
African — a pariah. I 
am not political I am just a 
filmmaker. I spend my life de- 
fending myself for being Serbi- 
an. I'm not a monster. There, 
see, I did it again.” 

Novkovic would have liked 
to spend his time enjoying the 
Andrfc de Toth and Sbohei Ima- 
mura retrospectives, instead he 
parried questions about Milose- 
vic. In a compromise, his film, 
along wiih “Nikola Kavaja," 
was not canceled, but moved to 
a small screen, away from the 
Bosnian films. Even there it met 
with controversy. 

“Say, Why Have You Left 



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International Herald Tribune, Wednesday, August SI, 1994 

Page 9 

the architects of time 




THE TRIB INDEX; 1 1 7.72® 

international Herald Tribune World Stock Index O. composed oi 
280 intematkmaBy investabie stocks from 25 countries, compiled 
by Bloomberg Business News. Jan. 1, 1992= 100. ■ 


NHK of Japan Tries to Revive a Fading Picture 


World Index 

3/30/94 close: 117.72 
Previous: 1 1 7,58 


By Steven Brail 

Itaemaimnal Herald Tribune 

nf — Mikio Kawaguchi, ihe president 

. ^ appeared in an extraordinary closed- 

circuit television program Tuesday to bestow a 
gnni message: Japan's publicly funded broad- 
itself 1 " 1S m jeopard >’ u ^ ess can rejuvenate 

Without our realizing it, a gap may have been 
emerging between us and the audience,” he said, 
out through self-examination and sdf -renova- 
tion we can improve NHK's image,” he said, 
referring to the broadcaster's organization and 
its employees. 

To NHK s staff, the message, largely devoid of 
specifics, was about as riveting as last year’s 
news. In fact, 83 percent of NHK’s employees 


say the broadcaster is behind the times, with 
percent in favor of change, a recent survey found. 

There is a growing sense of frustration at 
NHK, one as deep as the broadcaster's unreal- 
ized potential. After all. NHK ought to rank 
among the world's most influential radio and TV 
networks. Its annual budget, drawn largely from 
voluntary user fees, is a staggering S5.67 billion. 
Its 13,260 employees run four national TV chan- 
nels, three domestic radio networks and a short- 
wave radio service. Its immense technical labs 
coordinated development of the world's first 
high-definition television system, which went on 
the air in 1991. 

Yet NHK's presence in international broad- 
casting pales in comparison with the British 
Broadcasting Corp.. a rival whose size and oper- 


ating structure is most similar to NHK. or the 
Cab’s News Network, which began just 14 years 
ago. Despite its unmatched resources and a net- 
work of 27 foreign news bureaus that stretch 
from Vladivostok to Rio de Janeiro, NHK ap- 
pears to be retreating from international broad- 
casting just as the BBC. CNN and other news 
organizations are making inroads in the region. 

NHK is among Japan’s most powerful institu- 
tions. offering a quasi-official voice for news and 
extending its reach through cultural activities 
into hundreds of communities. But long-term, 
the home front presents a potentially bigger 
challenge than that faced overseas: cable and 
multimedia alternatives to broadcast television 
are spreading, portending a degree of competi- 
tion the networic has never had to contend with. 


The trend threatens to erode NHK's financial 
base as viewers question whether they wish to 
continue making voluntaiy donations that now 
range as high as S23 per month. 

“In an era with 100 channels, NHK will just be 
one of them " said Ken Soga, an executive man- 
aging director. “The big problem will be getting 
people to pay.” 

There is talk, of privatizing NHK, scrambling 
the signal to force subscribers to pay. or spinning 
off its news ivision. Nothing has been decided, 
and liule is clear about NHK's direction, except 
that the current set up with no commercials, no 
direct government subsidies and no fine for view- 
ers who do not pay fees will not last. 

The situation that is found at NHK resembles 

See IMAGE, Page 13 


i Asta/Pacific 


Europe 


Aporox.w8ighteig:3Z% 

Close- 132.46 Ptbvj 131J0 
>0 — 

-■3 

Approx. weighing: 371 

Close: 1 17.97 PwJm28 

m 


Lafayette 
Retreats 
From N. Y. 


Only the Fittest Survive 

Lockheed Uses Aerospace Darwinism 





M n M J d A 

1894 


t North America 


Latin America 

>1 

Approx, weeding: 26% 
Close: 3723 P»v: 97.13 

fgj- 

Appmx. weighting: 5% 

CtoSK 14S21 PWL-144JB 

B 

n 

■ ... 

V— 




90 M A M J JAM A M y J J A 
1994 1984 

Worts Irate* 

The index tracks US. d afar tabes of stocks kv Tokyo, Now Yak, London, and 
Argentina, Austrafla, Austria, Belgium, Bred. Canada, Ctile, Danmark, Finland, 
France, Germany, Hong Kona tt&iy, Mexico, Netherlands, New Zealand, Norway, 1 
Singapore, Spain, Sweeten, Switzerland and Vamzusia. For Tokyo, New York and j 
London, the Max b compand of toe 20 top issues In terms o/ market capit a liza t ion. i 
othetwsa toe ten top stocks are tracked. - 


industrial Sectors 


Tul Pin*. % Tub. hn % 

dm due dung* date deg change 

Energy 115-29 115.01 tfjT CapMSoodg 120.64 120.79 -0.12 

jjjjta 1313? 130.68 *0,47 BwBatBtWs. 137,54 137.12 +0.31 

Finance 117.77 117.66 -MUM. Congener Goods .104^3 104.70 -0.07 

Sendees 123.58 123.43 4020 llbceHaneom 135,97 134.70 40.94 

For mm information about the index,* booklet Is avaBable tree irf charge. 

Write to Trb Index, 181 Avenue Charles deGautie, 92521 NeutityCadex, France. 


. C r I.- 


© tntamaBonal Herald Tribune 


Compiled by Our Staff From Dvpasdia 

PARIS — The French de- 
partment store chain Gaieties 
Lafayette said Tuesday it would 
close its store in Manhattan's 
Trump Tower after two years of 
stop losses. 

The department store wfl] 
close before Nov. 1 and lay off 
180 employees, it said. 

“This was a purely financial 
decision,” said Rene Xavier, the 
company’s secretary-general and 
financial director. “Wejust can't 
keep sustaining these losses, and 
it's too unclear when the situa- 
tion would have changed. " 

The Fifth Avenue store, 
which took over the prime spot 
held by the Bonwit Teller de- 
partment store lost about 100 
million francs (SI 8.3 milli on) 
for the French companv both in 
1992 and 1993. 

The store was supposed to be 
the chain's U.S. showcase. But 
the dollar’s decline, which 
makes French products more 
expensive, and a sagging econo- 
my brought losses just when the 
store ne«led new money after 
buying Nouvelles Galeries, 

Nike Inc., the U.S. footwear 
and athletic gear company, said 
it intended to lease the space. 

(Bloomberg, AFP) 


Las Angela Tunes Service 

GALA BAS AS. California 
— Lockheed Corp.’s plan to 
create a defense industry be- 
hemoth by merging with 
Martin Marietta Corp. comes 
after Lockheed escaped a 
hostile takeover threat and 
survived the brutal downturn 
in Pentagon spending to go 
on and become one of the 
industry’s strongest units. 

Led by Chairman Daniel 
M. Telfep, 62, Lockheed used 
some acquisitions — notably 
its purchase of General Dy- 
namics Corp.’s F-16 fighter- 
jet division last year for Sl.S 
billion — to jump from the 
middle of the aerospace pack. 

Lockheed’s profits have 
climbed steadily over the past 
three years, with the company 
earning S422 million in 1993 
on sales of 513.1 Union. 

In the process. Lockheed’s 
stock has doubled since 1990. 

Matching a strategy used 
by Martin Marietta, Loral 
Corp., Northrop Grumman 
Corp. and other healthy de- 
fense contractors, Mr. Tellep 
said Lockheed must grow by 
acquisition. 

With the SI 1 billion merg- 
er, the Lockheed Martin 
would become by far the Pen- 
tagon's biggest vendor. 



Letterman Makes His Mark 


By Stuart EUiott 

New York Tima Service 

N EW YORK — A year after David 
Letterman joined CBS and began 
transforming the landscape of US. 
late-night television, the success of 
his brand of sardonic humor is helping to 
reshape how American consumers are being : 
sold everything from automobiles. to lingerie. 
Or, as Mr. Letterman might mockingly put 
it: Boys and girls, hold onto your wallets! 
Lettermania is loose! 

CBS introduced “Late Show. With David 
Letterman” on Aug. 30, 1993, immediately 
ending its decades at failure in the hours that 
follow, prime time. Mr. Letterman’ s ratings 
hegemony — he has bested “The Tonight 
Show With Jay Leoo” each of die last 52 
weeks — has translated into extraordinary 
financial gain for CBS. By oner estimate, hie 
now accounts for 30 percent of the network’s 
profits. 

At the same lime, Mr. Letterman’s influence 
has become obvious all around the clock, not 
just during the late-night shift. In a develop- 
ment emblematic of how advertising and pop- 
ular culture cross-pollinate, his edgy, ironic 
attitude, and his irreverent personality are per- 
vading the realms of advertising. 

Among those deemed to be inspired by, 
borrowing from, or evoking Mr. Letterman 
and his persona are Chrysler Corp., which is 
featuring Greg Kinnear, the Letterman-hke 
host of another nighttime talk show., “Later,” 
in a campaign for Eagle cars,; Maidenform, 
which in its ads for brassieres celebrates late- 
night stardom, and Fox Broadcasting, which 
asked past and present football stars to poke 


fun at themselves in a campaign for its Na- 
tional Football League telecasts. 

“Letterman has gotten so infused into the 
■culture and into the language of advertising.” 
Bill Stewart Herman, a senior copywriter at 
Grey Advertising in New York, said. “He’s 
part of the national vocabulary." 
i For Sock It, a superchlorinator for swim- 
ming pools marketed by the Olin Corp., Grey 
created a tongue-in-cheek print advertisement 
inspired by Letterman's familiar “Top 10” 
. talli es, complete with a reverse countdown that 
■Starts at No. 10 and climbs to No. 1. 

The “Top 10 reasons to use Sock It,” ac- 
cording to the ad. include Letterman -style 
japes such as “Embarrassed when you try to 
play ‘penny toss* but coins won't sink” and 
“You realize it’s not the neighbor's dog in 
your pool . . . it’s an otter.” _ 

Mai denf orm’ s wry campaign, by Ogilvy & 
Mather New York, features a woman who 
-buys the right brassiere and is subsequently 

■ overheard telling ajoke by an agent “who gets 
her a screen test that is seen by the network 

' executive who lands her a spot on that famous 
late-night talk show.” 

- And the Fox campaign, in which John Mad- 
: den, Reggie While, Terry Bradshaw and other 
current and former gridiron figures spoof their 
'• own images, carries the theme “Same game. 
New attitude.” That echoes the campaign that 
-CBS created to herald Letterman’s arrival from 
NBC, which carried the dieme “Same Dave. 
Better time. New station.” . 

■ “I don't want to say they copied us, 
George F. Schweitzer, executive vice presi- 
dent for CBS marketing and communica- 
tions. said. “But good promotion is hard to 
come bv, and things that work are imitated. 


Euro Disney 
Takes Ride 
On Bourse 


Reuters 

PARIS — Shares in Euro 
Disney, operator of the theme 
park outside Paris, took a 
roller-coaster ride on Tuesday 
— plunging at first to new lows, 
then skyrocketing to finish as 
the highest gainer. 

Since Thursday’s close, the 
share has lost nearly 12 percent 


lrf:TTl»;:L-megT»71ET 


Markets note on Euro Disney 
SCA on Friday sparked heavy 
selling. 

The moves in the share price 
has prompted Euro Disney to 
seek an inquiry by the Bourse 
watchdog agency. 

Tuesday’s wild swings forced 
the Bourse to suspend trading 
in the shares four times, once as 
it plunged an initial 10 percent 
to 7.60 francs (Si. 40), then a 
further three Limes as it reversed 
its slide on short-covering, and 
turned sharply higher. 

Share trading is suspended 
initially when a share rises or 
falls 10 percent from its closing 
price. Trading is subsequently 
suspended when the share rises 
or falls by a further 5 percent. 

Euro Disney closed at 9.10 
francs on heavy volume after 
hitting a new low during the 
session at 7.55 francs. 

The Paribas analyst Nigel 
Reed had valued the shares at 
just 1.60 francs. 


CURRENCY & INTEREST RATES 


Crass Ratos . Aug.3o 

* * DM. FJF. Lira D.FI BJ>. -SJF, . Yen 13 Pwefa 

Amcteibfii TJB 2jm ua BJ2M tins* Ma* U» uj« uy* 

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ISDR LMM §SW UNI TUBS 3hU» iSra 03X1 Ujs IHQ 1*07*1 

Omlnas m Amsterdam landau Ham York end Zurich. Halms In oilier canters; Toronto 
rotes Of 3 pm. 

a: To bur one Bound: tv To bur one dollar; Units of UK; NJQ.: not quoted: NJt.; not 
available. 

Othsr DoHar Vatnsi 

'uttbicv Fers Cerruey Per* Currancv Per* Cwtwkv Perl 

AratntPHs UM Onttteac. ZffS Max. pete um s.Afr.raad WW? 

AiratraL* UU1 jiangiteHS jjzk HZeokmlt lifl* s.Knr.wm att-'® 

Aanr.tcM. |I,1B . Hvrai.fBrtal WMS Norw. krone 4.KU swwLknma 7.7 3M 

Brauiraai O.W ted te nrnpw 31.M PMUma 3437 Taiwan zeJS 

CNAtteWan un lHte.miMi 7171JC PoackzlOfv 22842. TbalbeM 2SS* 

Cxett Konmo 2024 Mac _ turn PeAnscada 140»5 TurttehUra 32W1 

DmUikraM 42565 UraemiMk, XOO RMa.ratea 2154*0 UASdirPmo w® 

Egypt aound ISH BiuMtai' 0297B Soodi rival 13541 Vmec.beUv. i«J» 

Flu. markka 5.100V Mafaqr.riaK ZSS 2 Stoyl 15007 • 

Forward Rstss ... 

3 f 22 Cwreacv »*y *War 

PwraOSHTV— JJSS25 1JJM 1J307 CawMbH doUnr 13676 

omm aem ant - US» uoi? 'uail Jommmmvm WJi »j2 
swtes franc 13Z7I - UHO UJP 

. s ?? a ? ! Mi0a r ? Mroteftfaw.. irnsuei Bank (BrutseHl; Banco Commentae natkmo 
**”*!■■ Bonk Of roicyr, trokya}; Hand Bank el Conoco 
(Toronto); IMF ISOP). oumropto from nwters tmdAP. ‘ 


Eurocurrency Deposits 


Ms 

Swiss 

Frame 

Sled too 

French 

Franc 

Yen 

Aug. 30 

ECU 

4 '.*4*, 

4~»t 

5**-Sto 

2 v-3 ■- 

S’rf". 

4 Vm4 

5 -V5 

5W-5Ah 

2'A-2*b 

5A*-5M» 

43*4 V* 

J?V4 

5 il-5 >. 

V*T‘ t 

4 '-a 

***►494 


PA-Sh, 

3Vi-2*fc 

6'ri-. 


Currancv Per* 
MN.NH UTSS 
MZaataodt 14411 
Norw. krone 6KU 
PM.pma 3437 
PoaazlOtv 22842. 
rtart-Moida 141*5 
ntwa-nMa 315400 
Soodi rival 13501 
Stag.* 15007 


Carnmcv ■ 
S>Afr.raad 
5. Kar. won 
fend, krona 
Taiwan 
TkedbeM 
Turkhk lira 
HAS tllrpmr 
Venetbellv. 


, 4 ’WrS *1 a ^-a — eve. 

5^-5^ 5li-Ste 44W*i SV.-S*. 7V2-V 

Sources: neuters. Llovdt Bank. 

pmes jurtltnWir to Oiiertwnk deposits MSI mutton minimum for eotriimlmM. 


Key Money Rates 

united States Cl 

Dtstoud rate 
Prinutrdte 
Federal find* 

yrMBth CDs 

Traggg T MU 

I.,** Treason Ml 
2-year Treasury nW* 
j-yier Treasury nott 
7-year TreamrY oate 

Ja raw 

(HfanMt rate 
cannmawr ^ _ 

iHHiwiiktetwfedg 

KBOBigl nWfM* 

ssjrssL.*- 

cermonr. 

uwnkprdrate 

ChU money 

l-m«^*!| n |2S|k 

uw» fH Into 
jiniuilB inierkaBk 
IHreorBura* 


4X0 

4X0 

Book base rate 

su, 

5U 

7%. 

TV> 

CaHmaaer 

4 11. 

54k 

410 

4 RW 

1-<aantti taterbank 

5X0 

5X0 

437 

4X6 

feaaMta latabaak 

SVs 

5»* 

5X4 

5X6 

4-mocth bstorbaak 

5V. 

6X0 

4J7 

4X4 

BHmrGHt 

155 

8X3 

524 

524 

France 



4.16 

418 

laurveatteB rate 

5X0 

5X0 

4X2 

6X6 

CaHiYrtMV 

51, 

Six 

4X4 

4 M 

wnoniii imerbMk 

544 

5% 

730 

132 


5V? 

SIS 

7M 

7A9 

4«>urtiilatertanA 

5H 

5i. 

1X5 

1B4 

10-rear OAT 

7J5 

774 


1*i IV 
Ha TO) 
Z» 2 Hi 
2% 3*. 

m m 

478 472 

400 400 

400 *50 

500 5J30 

5X0 5X0 

5.10 5.10 

7.1* 7.17 


Sources: Reuters. Btoamoera, Merritt 
Lunch. Bank at Tokvo, Commerzbank, 
GnsmrBtl Montana Credit L wmate. 

GoM 

AJA PA4 Ctiye 
Zurich 38450 38475 +498 

London 304.15 58440 +139 

New York 391X0 39040 —1X0 

US dollars per ounce. Laodsn ofUOai llx- 
taas; Zurich end New York opening and dot- 
toe prices : New York Comes (December J 
Source: Reuters. 


Combining Forces 


After the Breakup: 
Volvo Profit Soars, 
Renault Sale Falters 


’^'Lockheed 

Lockheed Martin estimated 
total sales: S22.6 billion. 
Space & missile Electronics 
related : 


' Aero natidcs,\ 


Top Pentagon suppliers, 1993. 
Contracts awarded in bStions. 
McDonnell-Dooglas $ 7.5 

Lockheed 6.9 

Uartin Marietta 4.7 

Gen. Motors 4.1 

Northrop Grumman 3.8 

Raytheon 3^ 

United Techn. 3 1 

General Dynamics 3.0 

Loral 1.7 

U.S. defense budget. S bSHons. 
320 


Information 

& technology services 243 -ss * * ‘ ^ ' w 

Source: Lockeed estimates: Defense Budget Propel 

intemalloaal Herald Tribune 


But Mr. Tellep’s growth 
plan for Lockheed also has 
required the same massive 
layoffs and other job-stream- 
lining steps that many de- 
fense contractors have used 
to slash costs and therefore 
absorb the cuts in defense 
spending. 

Lockheed employs 77.500 
worldwide, down from 97.200 
at the end of 1987. 


The company traces its 
roots to 1913. Besides the F- 
16 line, Lockheed's planes in- 
clude the F-1I7A stealth 
fighter, the SR-71 spy plane 
and the C- 130 transport. 

Lockheed also is the lead 
partner developing the Air 
Force's new tactical fighter, 
the F-22. which could brine 


i-orces new tacucal lighter, 
the F-22. which could bring 

See SURVIVE, Pago 10 


Compiled by Our Staff From Dvpaicka 

Volvo AB announced an im- 
pressive profit Tuesday of 9.01 
billion kronor (SI. 2 billion j for 
the first half of 1994, a sign that 
the Swedish carmaker is accel- 
erating away from its aban- 
doned merger talks with Re- 
nault SA of France. 

In Paris, meanwhile, the 
French government said it did 
not plan to completely privatize 
Renault and would retain a ma- 
jority stake. It did not say when 
it would sell any of its stake in 
Renault, which is owned 80 per- 
cent by France and 20 percent 
by Volvo. 

Since Volvo abandoned a 
plan to merge its carmaking op- 
erations with those of Renault 
in December 1993 in response 
to protests from its sharehold- 
ers, the Swedish company has 
made major strides in trying to 
reshape itself, dumping its non- 
transport subsidiaries to con- 
centrate on cars, trucks and 
plane engines. 

The payoff from that policy 
started to show up Tuesday, 
when Volvo announced a firs’t- 
half profit bolstered by one- 
time gains of 4.1 billion kronor 
from its sales of those units. 


In Pans, meanwhile. Prime 
Minister Edouard Ball adur said 
in a radio interview that France 
wanted to resume talks with 
Volvo on the sale of part or all 
of the Swedish company’s 20 
percent stake in Renault. 

But in Stockholm, Volvo’s 
chief operating officer, Jan 
Engstro/n, said, “Volvo feds no 
need to renegotiate the terms of 
the disinvestment.” 

Volvo has agreed to sell at 
least 12 percent of in Renault to 
private investors if the French 
government sells pan of its own 
slake before the end of this year. 

Government plans to sell a 
majority of the state’s 80 per- 
cent Renault stake have pro- 
voked strong opposition from 
labor unions and the Socialist 
and Communist parties in 
France in recent weeks, 
prompting hints that the state 
would retain majority control. 

Confirming those hints in the 
interview. Mr. Balladur said: “I 
never said I intended to sell 100 
percent, or even 60 percent, of 
Renault The state will remain, 
at least for the time being, a 
majority shareholder." 

{Reuters, Bloomberg I 


Banking Clients Have Always Expected 
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•J.'. M • _ - «f-*'LC~.'AI --•— •• 


Page 10 

MARKET DIARY 


INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1904 


Economy Supports 
Market’s Advance 


Vic AhocMmI fteu 


Bloomberg Business <\>wj 

NEW YORK — Stock prices 
moved upward Tuesday for the 
fourth day out of five amid opti- 
mism that economic growth will 

U.S. Stocks 

remain strong enough to keep 
corporate profits rising, and that 
interest rates will hold steady. 

Aerospace issues got a boost 
when Lockheed Corp. and Mar- 
lin Marietta Corp. agreed to 
merge, creating the country's 
largest defense contractor. Ana- 
lysts said, however, that while 
the defense sector was bol- 
stered, it had few implications 
for the broader market. 

“Inflation is in check, you 
have strong-enough growth, and 
as long as rates are going to 
remain the same, that's good for 
the market,” said Anthony Con- 
roy at Mabon Securities Corp. 

The Dow Jones industrial av- 
erage, up 148 points — almost 4 
percent — in the past five trad- 
ing days, rose 1 8.45, to 3,917.30. 
driven by gain s in Bethlehem 
Steel, Alcoa, and International 
Paper. 

Among broader market in- 
dexes, the Standard & Poor's 
500 Index added 1.50, to 
47fi 09. lifted by defense, semi- 


conductor, paper, software and 
auto companies. The Nasdaq 
composite index advanced 3.24. 
to 766.45, helped by rising 
prices for Microsoft, MCI 
Communications, Intel. DSC 
Communications and Applied 
Materials. 

Defense stocks surged as in- 
vestors bet that industry con- 
solidation is likely as contrac- 
tors cope with shrinking 
military budgets. Lockheed was 
up lO'A to 76% but Martin Mar- 
ietta slid K cents to 4814. 

Recent acquisitions have 
buoyed share prices of both 
drug and food manufacturers, 
said Eugene Peroni, director of 
technical research at Janney 

Montgomery Scott in Philadel- 
phia. Increased merger activity 
is a net positive for stocks, Mr. 
Peroni said. 

The 30-year Treasury bond 
rose 11/32 to 100 14/32 in late 
tra ding . The yield on the bench- 
mark issue dropped to 7.46 per- 
cent from 7.49 percent Monday. 

Separately, Merrill Lynch re- 
portedly raised earnings esti- 
mates on 13 paper and forest 
products companies. This led to 
advances at such companies as 
Boise Cascade. Georgia-Pacific, 
Weslvaco and Weyerhaeuser. 



Dow Jones Av erages 

Omti High Low Last Chg. 

Indus 3700.47 3920X7 388149 371 7 JO - >8.45 
! Tram 1477.73 163148 1623.M 1431.44 -4.82 
I utn 189.49 19077 188.63 109.37 -l.fts 
Come 1340.76 1345.94 IXKL17 1345.33 -S.73 


Standard A Poor’s Indexes 

Hied Low Close Ctftc 
Industrials 559,65 S55L84 SS9JB +110 

Tramp. 38037 38607 387.74 + UM 

Utilities 157JKS 157.27 157.57 + 0X5 

Finance 4M4 *L3 0 44J8 +Mj 

5P500 47661 47134 47007 +169 

SP 100 44025 437.21 439J9 +1.02 


NYSE Indexes 


Cam Dasi Is 

Indusirldl 

Transo. 

Utility 

Finance 


HM L0» Lost CBg. 

26131 260 55 747319 -0.81 
325.94 323.91 325*8 -IJ9 
748.48 34/05 24a 10 -051 
31135 210.94 21147 -005 
71892 717.74 31874 -0J6 


EUROPEAN FUTURES 

Metals 

dam PravM 

BM Ask BM 
ALUMINUM (High Crate] 

Donors per metric ton 
Soot 1467 JB 1408X0 148100 140600 

Porwcrd _ WI7X0 18IM0 151150 1514X0 
COPPER CATHODES (High Orad>) 

Dot Ion per metric inn 
Spot 2457X0 24SLS0 3(16X0 2417X0 

Forward 2448JSD 2470X0 207X0 208X0 

LEAD 

Dollars aer metric tee _ 
spot 50X0 5WX0 575X0 

Forward 405X0 606X0 592X0 

NICKEL 

Dei Ian per metric ton 
SOOT 6025X0 6035X0 5905X0 5 

Forward 6120X0 6130X0 5990X0 5 

TIN 

Donors per manic Ian 
Snt 534500 533UB 5200X0 9 

_5«5X0 5^X0 5355X0 5 
zinc (Scwdai HWi erode) 

Dollars per ncftlc iw 
Spot 96550 966X0 963X0 

Forward 909X0 WaXO 986X0 


575X0 576X0 
592X0 59300 


5905X0 5915X0 
5990X0 599SX0 


260X0 5290X0 
5355X0 534 0 X 0 



HH* 

Law 

Last 

SMtle 

Cklw 

Joa 

1(050 

18929 

15928 

18950 

Unch. 

Pea 

141X0 

1(0X0 

160X0 

1*0X0 

—080 

Mar 

1S925 

1592S 

159X5 

15950 

-0^ 

Aar 

158X0 

uun 

158X0 

15725 

+025 
+ 02S 

Mmr 

N.T. 

i*5s 

N.T. 

15S25 


15625 

15625 

18625 

Unch. 


963X0 964X0 
986X0 987X0 


NYSE Most Actives 


NASDAQ Indexes 


High Lew Last Cb» 

Composite 766.20 76141 764.11 -7.90 

mduSfrWs 77a<W 7(6i3 769.03 -Z3S 

Banks 777.95 775X3 777 77 -A46 

Insurance 932.74 928X0 93JJ4 - 3.84 

Finance 959.12 957.52 959.12 -1X4 

Trgnsp. 739 JB 735.15 739/19 -1.9S 


RjRNab 


6*6 

6ft 

6ft 

LAC Q 

j irf 

11 

10ft 

11 

TdAAex 


(4*6 

63ft 

Oft 

USSura 


27V. 

24ft 

25*6 

ABcrcK 

r ; 

22ft 

31ft 

22 ft 

Compaq s 

TOr 

19*6 

38*6 

38ft 

Fords 


31 W 

30*/. 

30ft 

RJPpfP 


6ft 

6ft 

(ft 

McDnlds 


38*6 

27ft 

27ft 

AlrTchn 

■ j . 

39*6 

38 

28ft 

RJRNDDfC 

za 

7 

6*6 

6ft 

RalEIc 

r-i 'A 

25 ft 

33ft 

24ft 

Moftplas 

31173 

55ft 

53 

55*6 

DHncr 

30914 

42ft 

41ft 

41ft 

PtiiUUr 

30303 

58ft 

58ft 

58*6 


AMEX Stock Index 


Mali Law Lost dig. 
452 70 451-26 452.(9 - 1.23 


Financial 

HM Low dose Change 
34AONTH STERLING (UFFE) 
SCaXM-PNOf 108 PCI 
Sep 900 90* 94X9 +0X4 

Dec 9X43 9034 9X43 + 8X5 

Mar 9274 9145 9274 + 0A4 

Jon 92.19 92.14 92X0 +0X5 

Sep 9t» 9144 9L» +0X5 

Dec JUS 71.34 71X3 +005 

Mar 91X6- S»3 OTX5 +0X7 

Jua 90X5 9077 HUB +0X3 

SfP 9075 9065 9075 + 0X5 

DOC 9058 9055 MSI +0X6 

MW N.T. N.T. 9053 +0X7 

Jon 9042 9034 9042 +0X6 

Est. volume: 34X21. open Int^ 540X89. 
MUMTH EURODOLLARS (UFFE) 

Si ndmeo-ptseflHBCl 
Sap N.T. N.T. 94X5 UndL 

Dec N.T. N.T. 9430 + 002 

Mar N.T. MX. 9*M +003 

JOB 9370 9370 9X71 +0X3 

Ses N.T. N.T. 9X43 +0X4 

Est volume: 20 Open M- 30 


EeL vciuna: 71X57 . Ocen tel. 189X99 


BRUIT CRUDE OIL <IPE) 

UX. doUgn pgr taamHetsef IXI8 barrels 
Oct 16X7 16X0 IASS 1424 +0X0 

NW 1657 I«4 1635 1X36 +020 

Dec 1663 1641 76X0 I&46 +0.18 

Jan . 1664 1641 1643 1643 +617 

Prt UJS 1647 1650 1441 +017 

MV 1651 1637 1641 16X8 +017 

Air 16S 1647 18S 1637 +016 

May 1655 16S 1655 1637 +0.16 

Jua N.T. N.T. N.T. 1641 +015 

JIV N.T. N.T. N.T. 1643 +014 

AM H.T. N.T: H.T. 1645 +017 

Sen NX N.T. N.T. 1647 +010 

EsL volume: 35X28. Open faJL 147,710 


Stock Indexes 

High Lew One dam 


Pow Janes Bend Averages [ tf™^*™***}^ 


S«B 32870 ijgg 326X0 —23 X 

Dec 32905 3274X 3277X —205 

Ur 3299X 3299X 3279X — 23X 

. Est. volume: 9X72. Open lot: 41X99. 

ts S 3SS SSSS8 :it§8 

Od 2090X0 am® 207050 -1X50 

DK 2188X0 209600 385800 -16® 

Mar 7132X8 213200 2127X0 -16X0 

Est. volume: 35X02. Open hit: ffiX57. 
Sources: Mat It, Associated Press, 
London Int7 FTnmdat Futures Exchange, 
Inn Petroleum Excttange. 


NASDAQ Most Actives 


Evanses 

asms 

NexMOn 


Dollar Slips As Traders 
Await German Rate Clue 


VeL HWi 
52497 43 Vi 
41174 2646 
37975 264k 
37504 67'* 
33755 17* 
31889 29*6 
29159 69*6 
26408 34* 
27717 27*6 
24829 SB*, 
74750 15ft 
34593 4316 
23388 15"/- 
23221 4316 
22(00 43*6 


LOW Last 
39>t 43 'a 

25*6 26-/6 
2516 25 
65*6 67 

1616 17V6 

27*6 29*6 
6S*fe 4016 
23ft 24*u 
264* 2716 

5M6 58*6 

15*6 tpv» 
4i a 
15*6 15Vl 
41V, 42 

43*6 41*6 


Compiled by Our Staff From Dispatches 

NEW YORK — The dollar 
slipped against the Deutsche 
mark on Tuesday as an increase 
in French interest rates fueled 
speculation that rate cuts in Eu- 
rope had ended. 

Traders also marked time be- 
fore the key U.S. employment 

Foreign Exchange 

figures for August and a policy- 
setting meeting of Germany's 
central hank. 

The Fiend) move fueled spec- 
ulation that Germany’s central 
hank would not lower interest 
rates when it meets Thursday. 

Earlier this month, the Swed- 
ish and Italian central banks 
raised interest rates, mostly to 
shore up their beleaguered cur- 
rencies. Those increases con- 
vinced many investors that Eu- 
ropean central banks were 
finished cutting rates. 

“The increases definitely 
knocked the dollar down," said 
Richard Vuflo, director of for- 

See our j 

hi torn otto nai Recruitment 

every Thursday 


eign -exchange trading at the 
Bank of Montreal. 

The dollar closed at 1-5765 
DM, down slightly from 1.5773 
DM on Monday, at 99.62 yen, 
down from 100.00 yen. and at 
1.3295 Swiss francs, down from 
13327 francs. The dollar edged 
up to 5.4050 French francs from 
53985 francs. The pound ended 
at S13340, up from $1.5370. 

Economic data released Tues- 
day failed to move the U.S. cur- 
rency one way or another. The 
data — the August consumer 
confidence report and July new 
homes sales — canceled each 
other out, one economist said. 

The Commerce Department 
said new^home sales rose in July, 
and the Conference Board said 
its consumer confidence index 
slipped in August 
Traders said the dollar would 
be relatively stable until Friday, 
when the jobs report is released. 
A modest rise in employment 
may support the dollar more 
than a large increase because it 
would ease inflation concerns, 
one analyst said. 

(Bloomberg, Reuters) 


AMEX Most Actives 

VOL Mgti Low Lost am. 
luaxCo 11550 19*6 19*6 19*6 _ 

Echo Bov 9520 1216 12*6 13*6 -16 

OievSftS B673 13*6 12*6 13ft —ft 

VlacB 9975 33*6 32ft 33 —ft 

RovalO g 5135 4ft, 4ft, -Vv 

arcoPti 5116 13ft 12ft 13V, -ft 

Arrow 400 816 7ft 8V. -ft 

SKSCOs 3789 I5'.6 14*6 15*6 -ft 

XCLLM 3527 IVii 1ft lft. -U1, 

Nabors 3401 (ft 6 6*6 -ft 


Market Sates 



Today 



Close 

CODS. 

NYSE 

29452 


Am 

15X5 

22.91 

Nasdaq 

In millions. 

272X0 

284X3 


20 Bonds 
Id Utilities 
10 Industrial 


NYSE Diary 


Advanced 
Declined 
Unchanged 
Total issues 
NewHtphs 
New Laws 


AMEX Diary 


Advoncod 
Declined 
Unchanged 
Total issues 

New High* 
New Lows 


NASDAQ Diary 


Advanced 
Declined 
Unchanged 
Toted Issues 
New Highs 
New Lews 


Spot CommocHtlag 

Commodity Today 

Aluminum, lb 0673 

Cooper rtectrotvtle. lb 1.14 

iron FOB. ton 21X00 

Leod.it OJB 

Sliver, tray ok UBS 

Steel (scrap), ton 110.17 

Tin, lb 1638 

Zinc, lb 04823 


Ch*J 

sop 

95X5 

93X0 

DK 

9450 

94X3 

+ 004 

Mar 

9443 

9455 

— 0.11 

Jm 

94J0 

9453 

+ A19 

Sap 

9359 

9152 


DK 

9320 

93X3 


Mar 

9X48 

93X0 


jan 

9127 

9X19 


Sep 

9X07 

93X0 


DK 

9288 

9280 

PTRV. 

Mcr 

9277 

93X5 


Jtn 

9240 

9254 


DIvMands 


■43 903 

741 724 

2875 £8(4 

86 87 

21 29 


Est. volume: 58X33. Open bit.: 777457. 
9-MONTH PI BOR {MAT IF) 

FF5 mSJBen -pts of IN act 

Sep 9432 94JD 94X2 Ul 

Dec 9X94 93.W 93X2 — 


9472 

94X0 

94X2 

Unch. 

9354 

9350 

9353 

— 0X2 

9X63 

935B 

9X60 

—OJB 

9X34 

93J1 

9132 

—002 

93JM 

9X02 

93JM 

—0X4 

92X4 

9271 

9282 

—0X2 

9246 

9261 

9263 

—0X2 

9251 

9241 

9248 

— 0X2 


Est. volume: 22X01. Open bit.: 19X131 
LONG SILT CLIFFE1 
■50808 - PtS A 3Ml of 1B0 pci 
SOP TOD-12 101-30 182-03 — <H» 

Dec W2-02 181-06 101-30 — C+11 

Mgr N.T. N.T. 1D+4W -0-11 

Est. volume: 74X81. Open lot: 122X48. 
GERMAN GOVERMMEWT BUNS (UFFE) 
DM 2SBXM - PtS Of lM PCS 
Sm> 92X4 91X0 91X8 -HUM 

Dec VI 32 90X9 9L16 SMi 

"EMJBKn&S Mf* 

S«p 1UX0 11X62 113X8 —All 

Dec 11118 11178 mss —All 

Mar 112X0 11120 11134 — All 

JOB N.T. N.T. Tim — 0.18 

EsL volume: 99XS9. Open bit: 139X49. 


Industrials 

HMb LOW Lost Settle Woe 
GASOIL (IPS) 

ILS-deMon Per metric toa- M sotW torn 

S I 52J0 15050 15850 15A75 —050 
155X0 15X75 15X75 154X0 +050 
Nov 156X5 mm 15625 15625 +025 

Dec 15925 157X5 15X00 157J5 UndL 


Company Per Amt Pny rk 

IRREGULAR 

D eBoers Consul Mn c 238 9-1( 1MI 

o4wpto amauit Per ADR. 

REVERSE STOCK SPLIT 
HIllsMe Bedding 1 for TO reverse spOL 
STOCK SPLIT 
Ncdf Gas &OII 3 tar 2 spot 
INCREASED 

Bianco Inc "o X6 9-ZHM 

Omega Find Q .17 9-1 « ho 

S owS de Bncshr* . Q -55 9-8 9-15 

Suffolk bocd O .IS 9-15 1H 

Utd Bkshs (WVa) e 27 9+ 18-3 

CORRECTION 

Henry jack d JB H W 

Vftta Bancorp • JB 9-1 9-9 

d-corrected racord payable dates. 
e-revfa*d amount. - 

INITIAL 

Narraicerp _ M Ms 930 

SPECIAL 

Petroleum Ht - 2763 Ml 

REDUCED 

MaunaLoa Mocad Q JB 940 11-15 

REGULAR 

aas 

dlkaJVTS 

d2£E£«i 

^iillna 
FiJoSStolBklhA Q +5 WO TO? 


Petroleum Ht 


FstMuHSvsB 
Frisch's Rest 
InfsrctKmoe Fin 

xemga t/ e pare 
monthly; aaaart 


JM M2 9-26 
22 9-1* 10-14 
158 11-1S 1+30 
I2S 11-1 5 1+30 
M 9-16 +3 
JO M M 5 
X7 9-2 9-9 

J5 NO MF7 
JB 9-14 10-5 
JM M0 10-10 
.175 MO 10-30 


French Rate Increases Set Off Bond Turmoil 


Bloomberg Business Nem 

FRANKFURT — Sudden interest-rate 
increases by French commercial banks 
sent European markets into an after-hours 
taUspin Tuesday, in the latest indication 
that two years of rate reductions are grind- 
ing to a halt 

“dearly we're at the bottom of the cy- 
cle," said Bronwyn Curtis, an analyst at 
Deutsche Bank in London. “We’re going to 
see more nasties like this as we hit the turn." 

Bond futures fell in after-hours London 


trading after Credit Commercial de 
France, Soci6t6 Gendrale, Banque Nation- 
ale de Paris and Credit Lyonnais raised 
their base lending rates to 7.95 percent 
from 7.70 percent. 

Citing a rise in forward rates that 
squeezed lending margins, the banks re- 
versed the quarter-point cuts they had 
made in May. 

Three weeks ago, the Swedish and Ital- 
ian central banks rattled financial markets 


by raising their official short-term lending 
rates to try to prevent inflation. 

The poHcy- makin g committee of the 
Bundesbank, which tends to control the 
direction of interest rates across much of 
Europe, will meet to consider Germany’s 
next move Thursday. 

The Bundesbank has kept rates on hold 
since mid-July, making at least an interim 
halt in a gradual series of reductions that 
started after the European currency crisis 
in the summer of 1992. 


U.S./AT THE W* 

General Signal Acquires Reliance 

STAMFORD. CoimCTcut M 3 cqmre 

He combined industrial zed ^"^T a P w S36 bUlion. 

receive O.TOshares of the newajmpai.y for each of then shares, 

“SSSSb in afternoon uading from 
IsS^lKay , while Reliance Hectric shares woe up more 

than 25 percent at 525-375. 

Royal Oak Abandons Fight for Lac 

NEW YORK (Knight-Ridder) — Royal Oak Mines 

Tueschpr tiwtU hadwSxdrawn its offer to acquire the shares of 

I i^Sk L s £d it would tender its 3,780000 Lac Arato. 

with^shm5iol(£re' pr&crcncc [or owning American Barmks 
shares.” 

Metall Muting Sold to Cut MG’s Debt 

TORONTO (Combined Dispatches) — Metallgesdlscfaaft AG 
of Germany agreed to sell its 50.1 percent mtetrsun MetaU 
Muting Com- a Canadian nnnmg company, for about 458 million 
Canadian dollars ($330 million), Metall Mining said Tuesday. 

Metaflgesdlscbaft will sell its 40.7 million shares m MetaU 
Mining for 11.25 dollars each to a group of nnderwntCTs led by 
Bums'Fiy Lt<L, Gordon Capital Corp. and RBC; Dominion 
Secu ri ties Inc. 

Metangeseflschaft said the sale would enable it to cut debt 
considerably at its U.S. subsidiary, MG Corp. MG almost went 
bankrupt in January because of losses related to oil trading. 

(Bloomberg, Reuters) 

U.S. New-Home Sales Rose in July 

WASHINGTON (Combined Dispatches) — Sales of new sin- 
gle-family homes rebounded strongly in July despite rising inter- 
est rams, the Commerce Department said Tuesday. 

Sales were up 8.3 percent after a revised 11.4 percent fall in 
Jnn&^Fhe department said previously that sales had fallen by 14.1 
percent in June. Jujy.sales were well above economists 1 forecasts. 

Separately, the Conference Board reported that its index of 
co n s u mer confidence had dropped in August to 89.0, from revised 
readings of 913 in July and 923 in June. Analysts said the survey 
supported recent evidence that U.S. economic growth may be 
slowing, • (Reuters, AP) 

• »jj • 

Forihe Record 

TBejVew York Times named John M. Geddas business editor. 
Mr. Geddas is a former national news editor of The Wall Street 
JooraSL " (NYT) 

House of Fabrics Inc. said it would dose about 200 stores by the 
end of its financial year; the c om pany said it had a loss of $11.6 
minion in the second quarter. (Knight-Ridder) 

SBRVIVEs Lockheed Has Recipe 

~ ChiitlmvdfirimritrT' • Indeed, Lodcheed is aggrcs- 
Lodcheed billions of dollars in rively atten^pting to locate new 
the 2lst century. . - commercial markets to lessen 

Lockheed also is a leading its dependence on the Penta- 
prodneer of missiles — includ- gon. Mr. Tdlep said in May 
mg ^5 ballistic missiles on Txi- mat while Lockheed currently 
dent' submarines — and com- de r iv e s 62 percent of its revenue 
mumcations satellites. The from the Defense Department, 
company also provides an array it hopes to cut that figure to 40 
of services to the National percent by the fete 1990s. 
Ae^nautics and Space Atimin-^ ■■•••.. 
istratiori, including servicing Mr. TeUga has been Lock- - 
thospace shuttles. heed’s chairman since 1989. 


WORLD STOCK MARKETS 

























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INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


Page 1L 






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Into the Limeught and Aims for Full Development 


Today’s companies have 
mission statements, and 
some modenrizmg countries 
like Malaysia have copied 
the practice. Four years ago, 
the country embraced Vision 
2020, a catchy moniker for 
Prime Minister Mahathir bin 
Mohamad’s development 
thinking . If the vision comes 
to pass - and an annual aver- 
age economic growth rale of 
7_5 pcrcent is nec^saiy for 
it to do so -Malaysia will be 
three times wealthier in the. 
year 2020. than it is today. It 
will be a fully developed 
country, having grown from 
Tiger Cnb to full-grown 
Tiger. 

Not everyone is bewitched 
. by Vision 2020. Some say 
that shooting for a growth 
rate of 7.5 percent is overiy 
ambitious. They warn of a 
stop-go, boom-bust cycle of 
the sort, that has plagued 
China’s economy. They 


worry about tear-away infla- 
tion and soaring public 
spending. Others have a dif- 
ferent gripe: that the Vision- 
2020 xedpe is heavy cm eco- 
nomics but light on social 
and political development. 

The appeal of Vision 2020 
will soon be tested. Mr. Ma- 
hathir is obliged to call a 
general election before Oc- 
tober 1995, but few think he 
will waftthat long to seek a 
new mandate. 

At peace 

The governing National 
Front coalition, in power 
since independence, scored 
a two-thirds majority in Par- 
liament at polls in 1990. 
“Things lode even better for 
the government this time," 
says a Western diplomat 

Malaysia is at peace with 
itself. After race riots in 
1969, the government adopt- 
ed an affirmati ve action pro- 


gram called die New Eco- 
nomic Policy (NEP) to in- 
duct Malays, who make up 
60 percent of the population, 
into the business communi- 
ty. Warnings that the NEP 
would spark resentment 
among the Chinese, around 
30 percent of the population, 
have proved false. 

When the government 
awards contracts, Malay- 
owned companies have the 
inside track, and there are 
quotas that reserve jobs for 
Malays. When companies 
go public, they have to allo- 
cate at least 30 percent of 
their shares to Malays. 
Malay-owned companies 
have been the chief benefi- 
ciaries of the country’s pri- 
vatization program - ar- 
guably the world’s fastest, 
most comprehensive and 
most successful. 

Daim Zaimiddin, a former 
finance minister and now a 


senior government adviser, 
argues that fast-paced eco- 
nomic growth eased the pain 
of sacrifice. “The Chinese 
have not lost out.” he says. 
“They have benefited from 
an expanding economy. 
There have been no com- 
plaints.” 

General election 
In the coming general elec- 
tion campaign, the govern- 
ment will trumpet its ability 
to bring prosperity and 
maintain peace and racial 
harmony. The opposition 
will doubtlessly remind vot- 
ers that past performance is 
no guide to the future. By 
any measure, the National 
Front's record is outstand- 
ing. Consider the following: 

• Absolute poverty is al- 
most gone from Malaysia. 
“Few countries can match us 
in wealth distribution,” says 
Anwar Ibrahim, the deputy 


prime minister and finan ce 
minister. “In which other 
country do we see the poor 
owning shares alongside the 
rich?” Malaysia has induct- 
ed 3.5 million ordinary folk 
into the shareholding classes 
through a government-run 
investment trust Known as 
PNB, the trust manages 
around 20 billion ringgits 
($7.8 billion) in funds. 
Through investments in 177 
companies, it controls 
around 6 percent of the capi- 
talization of the Kuala 
Lumpur Stock Exchange. 

• Joblessness is just about 
gone, put to flight by six 
years of economic growth 
averaging over 8 percent 
The unemployment rate. 2.8 
percent now, is expected to 
shrink to 2.5 percent next 
year. In fact, the problem is 
the shortage of labor. 

• Inflation, at 4 percent 
this year, is high by 


Malaysian standards but less 
than half the current rate of 
economic growth. Finance 
Ministry officials say the 
rate may have peaked. Some 
independent economists 
agree. Says Sulaiman Mah- 
bob, executive director of 
the Malaysian Institute of 
Economic Research: “In the 
near term, the concern will 
be inflation, but in the medi- 
um term, policies to generate 
potential capacity should be 
in place.” In other words, the 
government is expected to 
win the fight against infla- 
tion. 

• Investment in the manu- 
facturing sector, which fell 
in 1992 and 1993, has start- 
ed to pick up again. Ap- 
proved investments are up 
141 percent in the first six 
months, evidence perhaps 
that Malaysia is managing to 
pul! in the high-capital, 
high-technology projects 


that it says it now deserves. 

Malaysia looks set to wel- 
come a second wave of 
Japanese investment - a 
tsunami set in motion by the 
fierce appreciation of the 
yen. Hiroshi Nakano, man- 
aging director of the Japan 
External Trade Organiza- 
tion's Kuala Lumpur office, 
thinks so. “Because of the 
yen’s tremendous rise, 
Malaysia will see more sta- 
ble and consistent invest- 
ment from Japan,” he says. 

Sustainable growth 
In the coming election cam- 
paign, there will be some 
sharp questions about the 
sustainability of the speedy 
growth engendered by Mr. 
Mahathir’s policies. The 
most pertinent question is 
probably this: Can Malaysia 
continue to thrive in the face 
of competition from lower- 
cost producers like China. 


Indonesia, Vietnam and In- 
dia? 

It can if it takes Singapore 
as its model and pushes out 
low-wage operations and 
moves into areas where cap- 
ital and technology are more 
critical than labor costs. 

Productivity gains 
But even Singapore stum- 
bled in the mid-1980s when 
it allowed wage rates to 
shoot ahead of productivity 
gains. Mr. Mahathir knows 
what happens then: “The in- 
dustrial process will stop. 
The economy will stop. And 
the workers who caused the 
wage increases will end up 
losing their jobs.” he said 
last month. He says he will 
not let this happen. 

In the coming general 
election, most voters are 
likely to give him the benefit 
of the doubt 

Sid Astbury 




M 


The company 
that makes the 
fastest moving car 
in British histoiy 
isiit American, 
European 
or Japanese. 


PROTON, Malaysia’s national car International Motor Shows. 


manufacturer, has been driving the British 


It’s a testimony of the British confidence 


market, and since 1989 PROTON cars have in PROTON quality and value that has 
been the fastest selling new import in the established PROTON as a world-class 


United Kingdom, ever. 

PROTON cars have won numerous 
awards in Britain, including an unprecedented 
6 gold medals at three consecutive British 


automobile manufacturer. 


Perusahoan OtomobH Hasionoi flerhad 


Manufacturer of the Malaysian National Car. 

HICOM Industrial Estate, Batu 3, P.O. Box 7100. 40918 Shah Alam. Selangor Dam! Ehsan. Malaysia. Tel:603-51 1 105S. 

Telex; PROTON MA 38545. Telefax r603-5 111252. 


00*4 37*^1 


i 









i iCtfV rt yCfailWCMi n : I w i lilJCJ t*YJ « OCI 3KJ »jy 


SPONSORED SECTION 


Sn^ORK 0 S E C H O N 


Visit Malaysia 94 Breaks New Ground 

World-wide marketing and advertising blitz is expected to generate 7 million tourist arrivals and $2.2 billion. 


Malaysia is taking a cue 
from Hollywood in its ef- 
forts to develop its tourist in- 
dustry - the firm conviction 
that sequels attract even 
more fans and bigger box- 
office receipts than the origi- 
nal version. 

The original version in 
this case was Visit Malaysia 
Year 1990, a global promo- 
tion that boosted tourist ar- 
rivals by nearly 40 percent, 
proving that Malaysia could 
hold its own against tourism 
giants like Thailand, Hong 
Kong and Singapore. 

The sequel is Visit 
Malaysia Year 1994 (VMY 
94), which is expected to 
generate seven million ar- 
rivals (an S percent increase 
over last year) and $2.2 bil- 
lion in revenue - not bad for 
a country that did not even 
have a real tourist board un- 
til seven years ago. 

The backbone of this 


Built in 1901 as the official residence of the British gover- 
nor of Malaya, Carcosa Seri Negara (Taman Tasek Per- 
dana, 50480 Kuala Lumpur. Tel.: 3/282-1888; fax: 3/282.- 
7888) is one of the most imposing colonial mansions in 
Southeast Asia. The sprawling building, set amid lush 
tropical gardens, was converted into a luxury hotel sever- 
al years ago. The service is truly impeccable (a private 
butler for each of the 13 rooms), and with its resident Ital- 
ian chef, you might think you are dining in Venice. Queen 
El izab eth and Prince Philip stayed here during their royal 
visit to Malaysia. Need we say more? Joseph Yogerst 


year's push is a $44 million 
worldwide marketing and 
advertising blitz by the 
Malaysian Tourism Promo- 
tion Board (MTPB). The 
country’s traditionally big 
markets, including Singa- 
pore. Hong Kong, Taiwan 
and the United States - 
which have shown contin- 
ued growth over recent yeans 


- are the principal targets. 

MTPB is also trying to 
boost the number of arrivals 
from Japan, India and Aus- 
tralia. three markets that 
have shown negative growth 
in recent years because of 
domestic recessions. 

“We are also exploring 
new markets, such as the 
Middle East and South 



Window-shopping: even rainy weather can provide somelhmg colorful and attractive. 


Africa,” says Datuk Sab- 
baruddin CMk. the country's 
minister* for culture, arts and 
tourism. 

The first Visit Malaysia 
Year was designed to put 
Malaysia on the tourism 
map: knowledge of the 
country seemed to be scant 
in places Like North America 
and Europe. “We literally 
had to tell people that we 
were north of Singapore, 
southwest of Vietnam,” says 
Mr. Sabbaruddin. 

Efforts to increase con- 
sumer awareness continue, 
but VMY 94 also aims to go 
a step farther by promoting 
the many facets of the 
Malaysian tourism experi- 
ence. The country is also be- 
ing positioned as a value- 
for- money destination where 
tourists can expect quality at 
reasonable prices. 

Adventure race 
In addition to the advertising 
campaign, MTPB is hoping 
to attract more foreign travel 
writers and film crews by 
staging special events that 
are worthy of global publici- 

ty- 

Qne event that is sure to 
meet both these objectives is 
the prestigious Raid 
Gauloises scheduled for 
Sarawak in October. Billed 
as the planet’s ultimate ad- 
venture race, the Raid has 
previously taken place in 
New Zealand, Costa Rica, 
New Caledonia, Oman and 
Madagascar. 

The race includes 50 
teams of five people each 
(including at least one fe- 
male) who must undertake a 
grueling 400-kilometer 
(248.5-mile) journey 
through dense jungle, down 
raging rivers and over high 
mountains, without using 
any mechanical devices. 

Although the route was re- 
cently mapped out by orga- 
nizer Geraid FusiL it will be 
kept an absolute secret until 
two days before the event 

Because Malaysia is such 
a diverse country, Mr. Sab- 
baruddin explains, the gov- 



Kiteffylng in Malaysia Is fun for tourists, but can also be a serious sport 


eminent has derided to con- 
centrate future promotion ef- 
forts on certain key areas 
rather than dilute funds and 
energy by promoting every- 
thing at once. 

Six places have been sin- 
gled out for the first phase, 
which is already under way: 
the federal capital at Kuala 
Lumpur, the old colonial 
town of Malacca, the resort 
island of Langkawi, the ad- 
venture playground of 
Mount Kinabalu in Sabah 
and the national parks at 
Taman Negara and Gunung 
Mulu. 

Catering to all tastes 
This should satisfy the de- 
mands -of all types of 
tourists, including history 
buffs, adventurers and na- 
ture lovers, those who want 
a big-city shopping experi- 
ence and those who just 
want to relax at a stunning 
beach location. 

Other types of visitor ac- 
tivities that have been sin- 
gled out for development in- 
clude meetings and incen- 
tives, agriculture, sports and 
education. 

Although relatively new, 
agro-tourism is already pop- 
ular in countries like Aus- 
tralia. New Zealand and the 


United States. Mr. Sab- 
baruddin feels that Malaysia 
has a lot to offer in this area. 
Visitors can observe or par- 
ticipate in the process of cul- 
tivating tropical fruits and 
vegetables, join coastal fish- 
ing expeditions or just hang 
out at fis hing villages, soak- 
ing up die atmosphere. 

Floodlit golf courses 
The government has also 
identified close to 30 sports 
in which visitors can par- 
take. High on fee list is golf. 
Malaysia will have more 
than 200 courses up and run- 
ning by fee turn of the centu- 
ry, six of them illuminated 
by floodlights so fee game 
can be flayed at night 

Traditional Malaysian 
sports like wau (late flying) 
and gasing (top spinning) 
are expected to attract visi- 
tors for their novelty value. 

These are not kids’ sports 
- the kites can have a 
wingspan as wide as six feet, 
and competition tops can 
weigh between 12 and 14 
pounds. The championships 
are taken seriously. 

At first glance, education 
may not seem like a tourism 
activity. Mr. Sabbaruddin 
explains that “by encourag- 
ing people to study here, we 


get something like a tourist 
for 3 <55 days a year. The stu- 
dent mayrgbt spend like a 
tourist, bufhestm has to eat, ■ 
needs transport, etc. The 
families of; the student will' 
also come r here for visits.” 

Domestic' market appeal 

Domestic tourism is another 
area that is receiv ing special 
emphasis. MTPB estimates 
feat close to $2 billion was 
spent by Malaysians travel- 
ing abroad-in 1990, and the 
government is seeking to 
stem this Outflow of cash by 
offering attractive domestic 
alternatives. 

Mr. Sat&apicidui says he 
wants a Reversal in the 
minds” of some- Malaysians 


who think that “foreign is 
better.” 

MTPB has established a 
domestic tourism division 
feat offers 25 different pack- 
age tours and Local holiday 
experiences. The board is 
encouraging hoteliers, tour 
companies and public-trans- 
port operators to expand on 
this by tendering year-round 
packages and special offers. 
- To overcome complaints 
that, many Malaysian hotels 
aretoo expensive for domes- 
tic tourists, fee government 
~hflg allocated $70 million to 
develop lower-priced ac- 
commodations, including 
campsites, hostels, forest 
lodges and budget hotels. 

• JjY. 


Sarawak^ useum in Kuching may be the beet museum 
in Southeast Asia, with its marvelous coflectioo of Borneo 
art and aftfiacts. The museum was started in 1891 at this 
behest offCharies Brooke, the second White Rajah, but 
the coUegflon has been added to qver the. years, and a 
new wingswas opened in 1983. Displays range from a 
life-sizedpnodel of ah I ban lorighouse (complete with 
head-hurled skulls) to a huge Kenyarvtrfoat mural called 
“The Treg of Life” and a comprehensive exhibit on cats 
(kuching ^veans “cat” in; Chinese). ‘ - . j.Y. 


A network that delivers quality 
service across Asia. 



Standard Chartered has long maintained an extensive banking 
network in Asia. We have also been recognised as the best, baring 
been voted Best Bank in Asia in the 1993 Euromoney Awards. 

Across the region, we continue to enhance the quality of our 
service in areas such as trade finance, treasury and corporate 
and investment banking. And we continue to develop new 
& 1993 capabilities and create new connections - for 

^AWARDS example in China, where we now have more 
offices than any other foreign bank, and, most 
recently, in Vietnam and Cambodia. 


In this highly competitive marketplace, it is not enough 
merely to operate an international network. It is a question of 
international networking - actively co-ordinating offices and 
services to provide benefits in responsiveness, innovation and 
efficiency. 

Having been voted Best Bank in Asia, Standard Chartered 
can fairly claim to deliver. 

Standard £ Chartered 


lGSwd By 5aMard Changed Sj.u>_ Lnn-cn Anwirawol lUROandotSFA 


INTERNATIONAL NETWORKING 







VLvh .. . 

m 


\ fi foil' 
yl/AA 


* Beyond flying people to faraway places, Malaysia Airlines . And to that .end,: w e have com * 
has a greater task. Flying the spirit of Malaysia around the world. . became the first global airline ) * 
Taking our voice and aspirations to the destinations we serve.' . continents. In’ fleet size and passed ^ 









Jwojyj ly, li£j& 


S.ONSORFD SIX TION 


INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


Page 11C 






JlTnuT 


ErnrET7fT3 


Malaysia, the government is 
now giving the nod to ven- 
tures abroad. 

Rafidah Aziz, the minister 
of international trade and in- 
dustry, says', increas- 
ing globahzahon of trade, it 
is necessary^ for Malaysian 
exporters ang manufacturers 
to remain competitive. Ris- 
ing costs of brodnetion, tight 
labor-maricat conditions, de- 
pleting resources locally and 
cost competition from de- 
veloping, countries may 
make it ecopomically neces- 
sary for lecal companies to 
reassess djeir operational 



m3 


make itecx 
sary for lc 
reassess j 
strategies.! 

The go* 
for reverie 
express® 
words. ^ 1 
oentivess 
tied appac 
ernmenffll 
like thoM 
South (for 
motor MO 
offer fflvi' 


demmeut’s support 
«e investments is 
i® in more than 
^ whole raft of in- 
s on offer to quali- 
ficants. Quasi-gov- 
jal support groups 
'Malaysian South- 
brp and trade pro- 
attrade are these to 
vice and funding. 


Too rug business parties 
The mine minister, Ma- 
hathir bin Mohamad, is a 
tirelffs globetrotter who 
lakesi group of business ex- 
ecutes with him cm every 

wth so much push be-f 
hinJit, outward investment 
is homing. Gan Ah-Tee, af 
dirfetor of the Kualf 
Loppur operation of man 
atfnent consultants KPMJ 
P<St Marwick, reckons tit 
onflow last year was $l.*p 
bflion - more than file 
ties the value in 199X I 
pfost other analysts wit 
ip figure much higheriis 
iany overseas plays lie 
jade through shell cowa- 
les incorporated in Drag - 
£ong or other tax ta vm. A 
pt of the cash is goidt to 


bnfrdmd outward fav&bnent 

gina- Some of the none} 
fpoding abroad is beim 
s lent on properties an! othe 
sue investments - ofbn ho 
tls and office buildiigs h 
Australia - but much if ii j. 
going into new busiiesse* 
tike Public Rank’s expan- 
sions in Indochina. 

| Compete abroad 

Local companies are cfccov 
ering that, they cai anc 
should compete aboad. 
Malaysia is a small nuket 
with just 19 million pople 
and ambitions finr, are 
finding rich pickings aroad. 

Says Francis Yeo, the 
managing director ofistedi 
construction powerouse; 
YTL Corp: “Eithe you; 
wake up and help takycur! 
country to die next sgc of 
progress, or you vekaie 
and die.” 

YTL is itself a mrei. It 
has built houses in apua 
New Guinea and Naibia. 
and is bidding on an rport 


Ways? the mdcarpat treatment 

construction project in Zim- 
babwe. Twenty years ago, it 
would never have believed 
that it would one day be the 
lead investor in a company 
operating a luxury train ser- 
vice between Singapore and 
Thailand. 

YTL is the first private 
company in Malaysia to get 
a license to build and oper- 
ate a power station. It hopes 
to partner German giant 
Siemens in power projects 
abroad, thereby mafcmg the 
most of its new venture at 
home. YTL thinks 
megawatts at home will lead 
to megabucks abroad 

Reverse investments are 
often crucial to maintaining 
export growth, aignes Ismail 
Salleh. the deputy director- 
general of Kuala Lumpur’s 
Institute of Strategic & In- 
ternational Studies. He adds: 
“While investing abroad, lo- 
cal companies are able to 
improve the linkages for ex- 
port of their products to host 



















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|: ve r 100 destinations in 36 countries. Such is 

lance. . This year, we Soon, we will reaclt- _ Paving new routes, reaching new places, 
fest Asia, spanning 6 our role in nation-b ^ flying high the spirit that is Malaysia, 
putheast Asia's largest. charting new h.oriz« u ' 




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countries.” For example, 
Sime Darby, the region’s 
largest multinational, used to 
be famous just for plantation 
products but is now involved 
in multiple businesses. It has 
set up an oil-palm refinery in 
Egypt and plans to do the 
same in Tanzania, Tunisia, 
China and Vietnam. 

Island entrepreneurship 
In Mauritius, a sleepy island 
nation of just over I million 
people in the middle of the 
Indian Ocean, about ISO 
Malaysians are manning a 
telecommunications assem- 
bly plant run by Sapura, 
working on a 2,000-unit 
housing project bagged by 
Country Heights or manag- 
ing the 200-room five-star 
hotel built by Berjaya 
Leisure. Sapura, Country 
Heights and Berjaya are all 
Malaysian companies. 

Not all of Malaysia's ex- 
ternal investments are in the 
developing world. In Aus- 


tralia, Sime Darby bought 
Hastings Deering for around 
$400 million, which it con- 
siders a bargain. The compa- 
ny holds the franchise for 
Caterpillar heavy equipment 
in parts of Australia, Papua 
New Guinea and the 
Solomon Islands. It is doing 
well under its new 
Malaysian owners. 

But snapping up a compa- 
ny like Hastings Deering is 
the exception; for the most 
part, Malaysian investments 
have been in emerging 
economies. Tajudin Ramli, 
chairman of TRL whose ac- 
tivities range from shipping 
to cellular phones, gives one 
reason for this: “Our own 
technology we do not have, 
but the ability to capitalize 
on someone rise's technolo- 
gy we have. Our strength is 
that we can take very ad- 
vanced technology into a 
third country. That is some- 
thing we can do well 

TRI is the parent of Cel- 


eom, operator of the biggest 
cellular network in 
Malaysia, and is eager to 
push overseas. In Cambodia, 
TRI is upgrading the 
telecommunications system. 
In Iran, it has a contract to 
install a cellular system in a 
free-trade zone - a contract 
that may be expanded to 
cover the whole country. 

Send home profits 
If all this sounds too good to 
be true, it may be. Kuala 
Lumpur, having instigated 
the rush offshore, now won- 
ders how it can persuade 
participants to send some of 
the bounty back home. 

Says Rafidah Aziz: “We 
may have to study the incen- 
tives given by Japan. South 
Korea and 'Taiwan. They 
have managed to encourage 
their companies not only to 
invest in our country but 
also send home profits they 
have been making.” 

SA. 


Business Briefs 

• Those who are looking for a home-away-frora-horae 
with Malaysian hospitality and Swiss-style service will find 
them at a new four-star hotel opened recently in the heart of 
Kuala Lumpur, the 3 1 8-room Swiss Garden Hold. 

The Swiss Garden was created with business executives 
in mind. Its Blue Chip Lounge is a favorite with the business 
crowd because it has a computerized financial information 
system that is linked to the Kuala Lumpur Stock Exchange. 
At a glance, you know how well - or how badly - your 
stocks are performing. The Swiss Garden is managed by the 
Swiss-Belhotel Management of Hong Kong, which operates 
hotels and resorts in China, Vietnam, Thailand Indonesia 
and Malaysia. 

• With 75 percent of its area under tree cover, Malaysia is 
one of the most densely forested countries in the world. For- 
est management began in 1901, with the appointment of the 
first forest ranger - evidence that Malaysia has long been 
aware of the need to safeguard its forest cover. 

Today, fewer logs are being shipped from Malaysia as 
more timber is exported in the form of finished products like 
plywood furniture, door frames and moldings. This means 
that fewer trees have to be cut down to earn the same 
amount of money. 

To spur the growth of the timber processing industry, the 
Malay sian Timber Industry Development Council 
(MTIDCj was set u p two years ago. In partnership with stale 
governments, the MTIDC has started setting up training 
centers and industrial estates, especially for furniture manu- 
facturers. 

• Anyone doing business in Malaysia will soon bump into 
Berjaya, a Malaysian-based conglomerate with assets 
worth S2.4 billion, a turnover of close to SI billion and a 
staff of over 1 3,000. Beijaya’s activities range from finan- 
cial services to manufacturing, hotels and resorts, real estate, 
consumer marketing, legalized gambling, fast food and in- 
frastructure projects. The controlling shareholder in Beijaya 
is Vincent Tan, a 41-year-old who started his business ca- 
reer as an insurance salesmen. Says Mr. Tan. “If internation- 
al fund managers invest in Beijaya. they are investing in my 
entrepreneurship’*. He once said that he would sell any - or 
all - of his 180 companies if the price were right. Vincent 
Tan is the archetypal Southeast Asian entrepreneur - a con- 
sumate deal-maker. But why is Beijaya such an octopus? 
Explains Mr. Tan: “Malaysia is a small country with a very 
successful economy. I decided many years ago that Berjaya 
should be a diversified conglomerate.” 

• Malaysia is the world’s largest producer and exporter of 
palm oil. and the Malaysian Palm 03 Promotion Council 
(MPOPC) is there to make sure that the country does not 
give up those twin titles. Acre for acre, oil palms can yield 
twice as much oil as soybean or rapeseed, the only real com- 
petitors in the vegetable oil stakes. More impressive still, 
palm oil does not need complicated and expensive process- 
ing. Just squeezing the fruit yields cooking oil or an ingredi- 
ent for soap and margarine. Further processing produces vit- 
amins A and E - or even an alternative to diesel fuel. 

Malaysia, producer of 55 percent of the world's stock, has 
persuaded Russia to take palm oil in part payment for MiG- 
29 jet fighters, and it has prevailed on a German company to 
fit out sleek Mercedes-Benz cars tonic on palm oil. 

Malaysia is making the most of whai one big grower calls 
“God’s gift to the world.” The MPOPC is helping to pass on 
that gift to other countries. SA. 


Eating Your Way 
Across Malaysia 

Cuisine that draws on the best of Asia. 


A lot of people think that 
Malaysia has the best food 
in Asia, a claim that is hard 
to dispute once you have 
dipped into a bowl of laksa 
or a plate of nasi goreng. 

The besL Malay food is 
found at roadside hawker 
stalls, especially those in 
Kuala Lumpur and Penang. 
But there is plenty of Chi- 
nese, Indian and Western 
food, too. In fact, you could 
easily eat your way across 
Malaysia as a way of learn- 
ing what the country is all 
about 

Malaysian cuisine reflects 
the racial composition of the 
country: about 60 percent 
Malay, 30 percent Chinese 
and 10 percent Indian. But 
□o matter which ethnic 
group is concerned, food is 
pan and parcel of the cul- 
ture. 

Big business deals are ne- 
gotiated over dinner. People 
bring gifts of pastries or oth- 
er delicacies when they visit 
the homes of friends and rel- 
atives. The “full moon” 
(first month) birthday of a 
newborn child is marked by 
the distribution of food to 
well-wishers. And any 
Malaysian wedding or new 
year’s celebration would 
certainly be incomplete 
without a lavish feast 

To say that Malaysians are 
obsessed by food may be an 
exaggeration - but not a big 
one. Maybe this is because 
their diverse cultural her- 
itage offers so much choice. 
Malaysians have even de- 
veloped a word to summa- 
rize the culinary delights of 
their country - sedap - 
which means “delicious.” 

Chicken and fish staples 
Malay food is rich and 
spicy, usually lashed with 
coconut milk. Chicken, 
prawns and fish are staples 
of the Malay diet along with 
some beef and Iamb - but 
never pork, which is taboo 
for all Muslims. 

Some popular Malay dish- 
es include beef rendang, a 
tender meat dish that hails 
from the west coast of 
Sumatra; long tong, a veg- 
etable stew with rice cakes 
in a coconut broth; nasi 
lentak, a breakfast specialty, 
which includes coconut rice 
served with portions of 
peanuts, tiny ikon bills fish, 
diced cucumber and hard- 
boiled egg; and that old fa- 
vorite saiay (barbecued 
meat served with a spicy 
peanut sauce). Another fa- 
vorite is laksa - rice noodles 
in a thick orange soup with a 
lemony tang, which includes 
coconut seafood and chili es. 

Local Indian specialties 
are the ever-popular tan- 
doori meat dishes; rojak - a 
mix of fhtits and vegetables 
in a nutty prawn paste; and 
nasi bandar , which allows 
you to sample a number of 
different curries and side 
dishes set around a large 
helping of steamed rice. 

For a breakfast with a dif- 
ference, try rati kaya, a pan- 
cake-like bread with an egg 
and coconut spread. As 
many Indians are vegetari- 
ans, delicious, balanced 
meatless meals are widely 
available. 


Emigrants from southern 
China make up most of the 
Chinese population of 
Malaysia, which explains 
the predominance of Can- 
tonese food. Peking, 
Sichuan, Hokkien and Tai- 
wanese cuisines are also 
popular and easy to find. 

After several hundred 
years of assimilation, many 
of the Chinese dishes have a 
tropical edge; they tend to be 
more piquant than their 
equivalents in northern Asia. 
Hokkien mee is a particular 
favorite - thick noodles with 
a variety of meat chunks 
fried in a thick black sauce 
with a sprinkling of dried 
fish powder. Charkuay teow 
consists of fiat rice noodles 
fried with oodles of bean 
sprouts, prawns and egg. 

Supply of appetizers 
Also prevalent are dim sum, 
a meal that consists of an 
endless supply of appetizers; 
congee, a rice gruel with bits 
of meat, fish or vegetables 
added for flavor; and a 
perennial favorite, Peking 
duck. 

Don’t be surprised to see 
vegetarian dishes featuring 
what seems to be pork, beef 
or chicken. The Chinese are 
well on their way to perfect- 
ing flour/soya and other 
bean-based replicas. 

Herbal foods with special 
medicinal purposes have 
been around for generations 
and are currently enjoying a 
resurgence in popularity. 
Look for gui fei (black 
chicken soup), which 
promises to maintain youth 
and improve the complex- 
ion, and stewed shin beef, 
which is said to prevent pre- 
manire graying. 

Can’t decide between Chi- 
nese and Malay food? Don’t 
worry - you can have a bit 
of both in the same restau- 
rant Afonya food is a prod- 
uct of generations of inter- 
marriage between Chinese 
and Malays. Some local epi- 
cures call it the best of both 
worlds. Specialties include 
otak-otak (spicy fish paste 
barbecued in banana leaves) 
and ayam buah keluak 
(chicken with stuffed nuts). 

You will find more than 
“native" food in Malaysia as 
well. All the larger cities, 
but especially Kuala 
Lumpur, feature food from 
around the globe: Thai. 
Japanese, Korean, Indone- 
sian, Portuguese, Mediter- 
ranean, Tex-Mex, French 
and even American ham- 
burgers. 

Tempting street fare 
Visitors can enjoy an excel- 
lent variety of food in hotels 
and upmarket restaurants, 
but part of any Malaysian 
experience is joining the lo- 
cals in sampling street fare. 
Hawker stalls and outdoor 
food centers can be found 
throughout the country, es- 
pecially in the huge pasar 
malams (night markets) that 
unfold each evening. 

In Kuala Lumpur, check 
out the stalls in Chinatown 
Jalan Alor and Cherry Street, 
as well as the food court* ; . 
Pertama Complex. Centr:.: 
Market and The Mall. 

JA . 


'fcjL 

W - •-> 


J Chow Kit Market in Kuala Lumpur is foe Dr. Jekyll and 
j Mr. Hyde of Malaysian markets. By day, Chow Kit is a 
| mild-mannered food and dry-goods market, selling every- 
l thing from bananas and curry powder to kitchen utensils 
} and Malay wedding outfits. But after dark, it mutates into 
t a throbbing sprawl of food stalls, sidewalk clothing 
| stands, music shops and entertainment arcades. Many 
[ stalls are open until 2 AM. - all night during Ramadan, 
s Not many tourists visit Chow Kit, but that makes it all the 
Ej more exotic. J.Y. 


“Malaysia” 

war produced in its entirety by the Advertising Department tf the buemaiUmal Herald Tribune. 

Writers: Sid Astbury is the Malaysia correspondent of Asian Business magazine. Julia Clerk and Joseph Yogerst arc based in Singapore. 
Section editor: Emily Emerson. PROGRAM director: William Mohder. 










f 

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INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


SPONSORED SECTICI 




8 . 



i 


Silver Lining Seen for Airline 

Malaysia Airlines passenger traffic rose last year on international mutes by 14. 7 percent 

A, 

/“\sia's once high-flying Its chairman, Zain Azraai. is by a healthy 9. 1 percent, inti 
prunes have been losing ai- acutely aware of what needs Top Malaysia Airlines ex- eas 
titude, with earnings and to be done. “We are not en- ecutives are confident that coti 
profits down, but most be- tirely satisfied with our pro- the airline is on the mend, enu 
heve that they have now ductivity," he says. “We have been through the prc 

pamed the worst blows, and Early efforts at boosting worst this past year," says Air 
all are fighting to get back productivity have been re- Mr. Azraai. He points to evi- dor 
on top. warded. More rigorous (fence that a recovery is un- gov 

Compressing costs is be- housekeeping is beginning der way which is expected to ma 
coming a passion at to show up in the corporate accelerate as more Western 
Malaysia Airi roes. Southeast results. Though pretax profit economies lurch out of re- sun 
Asia s biggest airline in slumped by 90 percent in the cession. trii 

terms of passengers carried, year to March, revenues rose mo 


by a healthy 9.1 percent. 

Top Malaysia Airlines ex- 
ecutives are confident that 
the airline is on the mend. 
“We have been through the 
worst this past year," says 
Mr. Azraai. He points to evi- 
dence that a recoveiy is un- 
der way which is expected to 
accelerate as more Western 
economies lurch out of re- 


Tamu is a traditional market in Sabah, the state that 
Straddles the northern tip of Borneo. The name translates 
into “meeting place” and that is exactly what tamus are. 
There are scores to choose from, but the best is the Sun- 
day market at Kota Beiud, where thousands of tribal peo- 
1 pie come from the hinterlands to sell all sorts of goods: 
\ beadwork, metal ornaments, baskets, native hats and 
| tropical fruits. Kadazans predominate, but you can also 
! expect to see betel-chewing Bajau “cowboys” and mem- 
S bers of other tribes. J.Y. 


Efficiency improved 
Malaysia Airlines has im- 
proved its overall load fac- 
tor. the measurement of how 
efficiently on airline uses its 
fleet. The figure has bobbed 
up to 63.9 percent, down 
from a high of 77 percent in 
the mid-1980s but 1 percent 
higher than last year. 

The airline has also im- 
proved its pulling power. 
Passenger traffic was up last 
year, by 14.7 percent on in- 
ternational routes and by 6.8 
percent on domestic routes. 
Translating extra air miles 


into extra revenue is not 
easy. International routes ac- 
count for 80 percent of rev- 
enue, and most of them are 
profitable. But Malaysia 
Airlines shows a loss on its 
domestic service because the 
government, rather than the 
market, sets tariffs. 

Malaysia Airlines has 
summoned up the courage to 
trim its staff and promises 
more retrenchments. The 
roll call now stands at 
19,907 employees, 276 less 
than last year. 

Newer planes will help the 
airline cut costs, say ana- 
lysts. 

The airline will give up 
routes, especially new ones 
like the services to Johan- 
nesburg and Mexico City, 
only as a Last resort “It takes 
years to build up volume on 
new routes,” says Kamarud- 
din Ahmad, managing direc- 
tor. 

Last October, Malaysia 
Airlines became the first 



A famous design pufls in the pa ss engers . 


carrier in the region to fly to 
South Africa, with a weekly 
service to Johannesburg. 
Seats on the B747-200 are 


booked up weeks in ad- 
vance. Bold moves some- 
times pay off. 

SJK. 


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s economic grewth world’s top 10 performers, 
ning monetary «a- The KLSE aciieved a 
number of records in 1993. 
Negara’s problems including daily lading of 
cn recent attempts to 500 million shares, market 




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That's Malaysia! 





gara losses in for- 
hange dealings to- 
72 billioo in 1992 
S billion last year. 

of the embarrass- 
the $6 billion loss, 
‘rime Minister and 
Minister Anwar 
pints out, the cen- 
ts still a strong in- 
with assets at the 
993 exceeding $40 
fe is also bullish on 
rail health of the 


economic growth 
reasons the bank- 
r is so healthy is 
s surging econom- 
averaging more 
at per year over 
seven years. The 
led to an estimated 
to 100 percent in- 
the wealth of mid- 
upper-income 
ans, much of the 
Elding up in banks, 
onomic boom has 
constant inflation 
' g from arbi- 
_ increases and ex- 
ity. The consumer 
dex showed a 4.5 
like in the first quar- 
ts year, and econo- 
edict that inflation 
lit 4.2 percent in 

ui anxiety has been 
a result of Bank Ne- 
uccess in lowering 
ales, which has bad 
effect of mopping 
iss liquidity and 
g the inflow of for- 
ids. Among other 
to dam die in- 
gn funds were a 


manyiJealers showing de- 
cided aution. Most analysis 
view jiis as a temporary 
pbenoienon, pointing to a 
numbe of factors that 
shouldkeep the bourse 
buoyantfor years. These in- 
clude Miaysia’s vast natur- 
al resoujes. stable govern- 
ment am economic growth. 

Given he strength of the 
underlyig economy, the 
earnings vf Malaysia’s top 
companieare also on an up- 
ward trnd. Forecasts 
gleaned ft-m 17 brokerage 
houses ampublished in the 
Malaysian finan cial Survey 
put the grovh of listed com- 
panies at t.7 percert this 
year and f!8 percen next 
year, with pice-eamijg ra- 
tios of 24.1 unes for ’994. 

Insurance ites 

Thanks to thse strong Fun- 
damentals. ardysts say that 
the bourse isundergoug a 
period of coijolidatioi at 
current levels nd will son 
begin another toward cuire. 

There are sins tiiat fir- 
eign investors re regain ig 
interest in the XSE - fc-- 
eign equity fuds pourtj 
more than $4 bflion into tfc 
Malaysian stocknarket laj 
year. 

Bank Negara Uzontinuing 
its efforts to i torove the 
credibility of thSnsurance 
industry, which i has been 
supervising sine 1988. 
Malaysian insuirs must 
now obtain apprc-al f rom 
the central bank bfore en- 
tering into negotiatios to di- 
vest paid-up caftal or 
change company o^ership. 

Clerk 



MWL 


THE MALAYSIAN TIMBER INDUSTRY DEVELOPMENT COUNCIL 

Floor. Bangunan Arab Malaysian. Jalan Raja Chulan. 5oa» Kuala Lumpur. Malaysia. Tel: 8Q3-Z333999 Fax: 603-2386376 


...Marital-: ' NVr 28% 

linked KmgdoOT ” j 7 10%--" 

Unted St^ss T.'V 7 ".". 31% • 

Source: FAO Production Yearbook, 1993 
“Latest estimate 



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ALGLST 31,1994 




Page 11E 


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ii-'M Recipt 


Telecom Expansion: Private Companies Set the Pace 

The use of satellites will provide Malaysim.televieviers with many extra channels to yap through. 


now things change. 
Telecommunications in 
Malaysia used to be as sim- 
ple to understand as a pay 
phone: one government- 
owned company holding a 
monopoly on telecom ser- 
vices and supervised by a 
government ministry. 

- No satellites. No fiber op- 
tics. No cable TV. No ma- 
neuvering^ toward multime- 
dia alliances. Then came the 
great privatization push in 
1990. 

Now' the courrtiy has three 


cellular netvpks (and Mil 
soon have four). Two com- 
panies, one If them the pri- 
vatized fon^r monopoly, 
have licenps to provice 'a 
. foil range p telecoms -.er- 
vices. Folr outfits. hive 
plans to if the fiber-b)tjc 
cables neefed fo build •vhai 
in techno Jilk are called in- 
formatiojsuperhighwivs. 

Two fiJis have appro als 
• to offer Je ultimate in.-y- 
berspacepvances - pers>n- 
al comiunications T^t- 
' works; qPCNs. Too m^h 


There is a multitude of coursesp choose from i 


Malaysia, given the fact that the < 
crazy in the last few years. The m 
also the oldest, the 18-hole Car 
Course at Tanah Rata in Pahai 
opened in 1935, when this mounts 
for British rubber barons fleeing tH 
their plantations. The Japanese ln§ 
greens and used them as vegfi 
World War II. / 


sentry has gone gc 
at beautiful course 
iron Highlands Gc 
a State. The cours 
ft resort was a have 
heat and humidity i 
eriat Army dug up th 
ible gardens durin 
J.> 


of a good thing? Perhaps. 

Seri Sarny Vellu. minister 
of energy, telecommunica- 
tions and posts, hinted in 
July that Malaysia had more 
than enough telecom service 
providers. "Applications for 
services and networks that 
are currently available will 
not be issued licenses." he 
declared. 

Not that Malaysia has tak- 
en privatization "too far. The 
World Bank, in its latest 
World Development Report, 
praises Malaysia for not 
waiting to get all the rules 
and regulations in place be- 
fore privatizing. 

Companies have shown 
that they will invest even 
when die regulatory frame- 
work is still evolving, as 
tong as they have licenses to 
get on with the job. As the 
World Bank puts it: “Statu- 
tory regulatory efforts have 
lagged, and discipline on op- 
erations is imposed through 
contractual agreements.” 

The scramble for licenses 
is just about over. The diffi- 
cult part is making sure that 


players cooperate as well as 
compete. “They should 
work together and* not waste 
the country’s resources to 
set up their own infrastruc- 
ture," says Mr. Sarny. 

Protective shield 
When Singapore privatized 
its telecom authority late last 
year, it shielded the island 
nation’s biggest company 
from outright competition. 
"Singapore Telecom is a vir- 
tual monopoly, although its 
licenses are renewable every 
15 years" says Long Shih 
Rome, an analyst with Kuala 
Lumpur-based Mohaiyani 
Securities. 

When Telekom Malaysia 
went to the market, it did so 
without so stout a shield and 
had to do immediate battle 
with pretenders to the 
crown. In Malaysia, a public 
monopoly has not been 
transferred to the private 
sector. Through the privati- 
zation of Telekom, the tele- 
com sector was thrown open 
to all comers. 

Malaysia will be launch- 


The Malaysia Sumut 

Government and business leakrs to work together i Malaysia Inc. at summit. 


ing its first telecommunica- 
tions satellite toward the end 
of next year. Binariang. a 
private company controlled 
by Malaysian financier 
An an da Krishnan. will be 
picking up the tab. So it will 
be Binariang, rather than 
Telekom, that will give 
Malaysia the satellite-TV 
capability that Thailand and 
Indonesia already enjoy. 

With the exception of Sin- 
gapore. Malaysia is current- 
ly the only country in the re- 
gion that outlaw's satellite 
dishes, preventing its people 
from watching satellite TV. 
Binariang will only beam 
programming approved by 
the government. Neverthe- 
less. it will provide 
Malaysia’s televiewers with 
lots of extra channels to zap 
through; now they have a 
choice of only three, two of 
them government-owned. 

Binariang’s satellite will 
come with powerful Ku- 
band transponders, not the 
C-band versions used by- 
most satellite operators in 
the region. Malaysians will 


J dhn-Wolf. the U.S. am- 
bassador to Kuala Lumpur, 
likens the Malaysian leader- 
ship to a corporate jet - fast 
and flexible. The analogy is 
a good one: in Malaysia, se- 
nior civil servants and top 
business leaders have a simi- 
lar business-Uke style. They] 
often travel together, and on I 
Prime Minister Mahathir bin 
Mohamad's frequent trips 
abroad, business executive/ 
often outnumber the civs 
servants. J 

It is all part of Malays/ 
Inc: the notion that goverj 
ment and business shout 
work together for the com- 
mon good, not pull in on- 
site ejections. I 

To make sure civil f- . 
vants and businessperae 


lane the same vision, gu 
rnment departments hi] 
pgular meetings with thr 
llients. For example. ( 
preparation for the annq 
budget, bankers and bu- 
ness executives meet wi 
[experts from the Finan 
Ministry. . 

Their wish-list is co 
veyed to the finance min 
ter, and their recommenc 
tions are sometimes inc« 
porated into the final budg 

Fast-paced growth 
The 1994 Malaysia Sumr 
Meeting, to be held Nov. 2 
22 at the Shangri-La hotel 
Kuala Lumpur, is anoth 
reflection of Malaysia Inc. 
will bring together, und 
the auspices of the Intern 


tional Herald Tribune and 
the Institute of Strategic and 
International Studies, a tri- 
umvirate of government 
leaders, corporate chieftains 
and prominent academics. 
The issues on the agenda: in- 
vestment, trade, the state of 
the Malaysian economy and 
how the country plans to 
sustain its fast growth. 

Petronas, Standard Char- 
tered Bank, TRI and YTL 
are the Summit Sponsors. 
The Corporate Sponsors are 
ABB, Berjaya. DRB, the 
Malaysian Timber Industry 
Development Council, the 
Malaysian Palm Oil Promo- 
tion Council and Occidental 
Petroleum. Proton is the of- 
ficial car for the Summit. 

SJL 



For the telephone user, privatization means more choice. 


only be allowed to use Ku- 
band dishes, which cannot 
receive C-band transmis- 
sions. 

When Binariang bounced 
onto the scene earlier this 
year, analysis were surprised 
that its licenses matched 
ihose of Telekom. In direct 
competition with the former 
monopoly, it will offer both 
wired and cellular services. 
It will be the first in 
Malaysia with a fully digital 
cellular network following 
the Global System for Mo- 
bile (GSM) communications 
format. 

Extensive ambition 
Binariang. which is aiming 
for a listing in the next five 
years, will take on three 
companies in the cellular 
network market: Telekom, 
which was first with a mo- 
bile phone capability; Cel- 
com. since 1989 the market 
leaden and Mobikom, a con- 
sortium that earlier this year 
began offering a combined 
analogue -digital sendee fol- 
lowing the popular Ad- 
vanced Mobile Phone Sys- 
tem ( AMPS ) format 
Binariang and Mobicom 
w ill be hard-pressed to dis- 
lodge Celeom, which has 
350,000 subscribers. It is 
largely thanks to Celeom, a 
company controlled by for- 
mer merchant banker Datuk 
Tajudin Ramii, that mobile 
phone penetration in 
Malaysia matches thar in 
France and is more than 
twice the level of neighbor- 
ing Thailand. 

A Binariang statement 
shows the extent of its ambi- 
lion: “Malaysia will be 
among a select group of ful- 
ly industrialized countries 
offering its public a folly in- 
tegrated alternative to" the 
traditional government-con- 
trolled services.” 

Binariang intends to be- 
come Malaysia's second 
network. Binariang has a li- 
cense to lay fiber-optic ca- 
bles. but so have Telekom, 
Celeom and a fourth player j 








'A '"s. 


Rising above Kuala Lumpur, a broadcast tower contributes to the 
growth in cellular telecommunication. 


in this exciting technology - 
Time Telekom. 

Tune is a unit of the mas- 
sive Renong conglomerate 
controlled by 40-year-old 
Halim Saad. "Though 
Telekom and Celeom may 
seal an alliance to share the 
cost of laying fiber optics, 
the frontrunner in this fieid 
is Time. Mr. Sarny says so 
himself: "AH telecommuni- 


cations operators and service 
providers should use the 
fiber-optic network devel- 
oped and operated by Time 
Telekom.” 

Time Telekom is at the 
top because its network - 
fiber-optic cables, satellite 
earth stations and mi- 
crowave relay stations - 
should be up and running by 
the end of next year. S-A- 



IS 7AKW a f>lini«4t 


When you see Ye Olde Smoke House in Tanah Rata, t 
Cameron Highlands, the first thing you notice is that there I 
is nottiing remotely Asian about its setting - it is an un- t 
abashed slice of the English countryside. The Smoke { 
House has all the usual British pub trappings: it is a black- j 
and-white mock-Tudor dream that houses English an- } 
tique furnishings, copies of Country Life magazine and a < 
roaring fireplace. Take your pick of Guinness draft or high f 
tea with scones and Devonshire cream. J,Y. I 




[illlIWl 


TV' 


■$> 3 




MEM 


".oW 

1*. 


They can’t even say “telecommunications” 
but they all know how to use the phone. 





■V- 



: 1 J ■ • : , 









In the ear days when Malaysia was known as the. Golden 
Chersona sea-faring explorers and traders came to her shores 
in search! silk and spices. 

Today, e search continues. Some of the world’s largest 

and mft successful international oil companies are busy 

explorij for hydrocarbon in Malaysia. 

I 

PETR(^AS, as Malaysia's national oil corporation, has to date 

f 

signejinore than 30 production-sharing contracts with a good 

* 

j 

I Mferi JtW SuRpi Hts«MiodB>*i. P0 Bu SGTTJXu.' 


mix of international oil companies. Those who have been 
for some time have found Malaysia a good place to 
do business. 

Our plus points, we’ve been told, are our professionalism 
jpd our very positive attitude towards foreign investment 
3 ? well as our country's political stability and good 


TT elecommuni cations is a big word to the young. But then 
again, these days it’s a big part of everyone’s life. And no-one 
knows that better than us: Technology Resources Industries. 

After all, that’s our business - providing people with advanced 
telecommunications capabilities like international services, 
cellular phone and data communication services, paging, 
trunk radio, voice information, and much, much more. 

Just like our young friends here, we started small. 

But like them, we’ve grown faster than you’d probably imagine 
and along the way, we’ve learnt a great ueal. 

Today, we supply solutions as well as services. And other fast 
developing countries come to Malaysia seeking our expertise 
and experience in setting up systems of their own. 

We’re only too happy to help wherever we can. Because we 
know that’s really what telecommunications is about: people 
helping people so we can all become better informed. 

And by the time our young friends here can actually say 
“telecommunications’'’ we think the word will mean a great 
deal more to many more people than it does today. 

We’re TRJ. One of Asia’s fastest growing telecommunications 
companies. Call us anytime. Now or in the future. 


Technology Resources Industries Berhad 

FW. MrmnTR. I'.IUJib.- >^5i. Ktab Lumpur. Mibvw. 

Trl m.l.W ra\ 2u|*. 


.pfiastructure. 




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n IAN LLOVD 


Page 11F 




INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


M 


A 


Privatization Leads to New Benefits 

Infrastructure projects can mean profits for the developers and increased business for everyone. 


I 


nfrastructure. «n the form 
of energy, wiier. transport 
f»nd communications, “rep- 
resents. if not the engine, 
then the wheels, of econom- 
ic activity,” according to a 
World Bank report. In 
Malaysia, where infrastruc- 
ture projects are usually 
handed to private companies 
rather than carried out by the 
government, the provision 
of energy, water, transport 
and communications is both 
a business in itself and a 
means of promoting busi- 
ness activity. 

Six years ago. for exam- 
ple. the government award- 
ed the Renong Group a 30- 
year concession to finance, 
build, operate and maintain 
a 900-kilometer highway 
running the length of penin- 
sular Malaysia. It is said to 
be the largest single road- 
building project in the 
world. The North-South Ex- 
pressway. running from the 
Thai border through 
Malaysia to Singapore, will 
be completed some time this 
year. Renong is hoping to be 
finished 14 months ahead of 
schedule and within its bud- 
get of 6 billion ringgit i$2.4 
billion). 

Traffic on completed sec- 
tions of the highway is one- 
third higher than initial pro- 
jections. By 1998, Renong 
hopes to be earning more 
than 1 billion ringgit a year 
in tolls and other revenues. 
This is so good a business 
that Renong reckons many 
investors, large and small, 
would jump at the chance to 


have a stake in it. and 
Renong plans to take its ve- 
hicle for implementing the 
project, known as PLUS, to 
market. 

“PLUS will have a five- 
year profit record by the end 
of 1994. and it is our inten- 
tion to seek a listing after 
that," says Amirullah 
Mayudin, the managing di- 
rector of PLUS. 

On the whole, the new six- 


"We used to fly our stuff 
between Penang and Kuala 
Lumpur, but the new high- 
way means we can use 
trucks says Bryan Jamison, 
the general manager of the 
Malaysian operation of 
DHL Worldwide Express. 
Using trucks makes con- 
signments cheaper, to every- 
one’s benefit 
It is the same story with 
the proposed second road 




project would not be bank- 
able. so the company decid- 
ed to make the bridge just 
part of a much larger devel- 
opment A huge new town- 
ship is planned, together 
with new roads lead! 
the bridge. 

Last March, Indah Kon- 
sortium began taking over 
the state's 4,000 kilometers 
of sewers and 1,900 treat- 
ment plants. Indah is a joint 


Reinforced concrete -/n the form of bridges, tail buildings and i 


fc transforming the-Jkytines of M&aysia's cities. 


A sign of booming times: a roadside billboard featuring new condominiums. 


lane highway has been a 
boon for business, except for 
the shopkeepers of Taiping, 
a small peninsular town and 
once a handy stop for mo- 
torists. Motorists now’ whiz 
by the city. 



The monarchy is alive and well in Malaysia, with a king- 
ship that rotates between the sultans of the various 
states. Each has a sumptuous palace, but the best is the 
Istana Besar in Johor Bahru. Built by Sultan Abu Bakar in 
1866, the palace is a flamboyant blend of European and 
Malaysian styles, an Oriental version of California's opu- 
lent Hearst Castle, with a bizarre range of furnishings that 
includes tiger heads, golden thrones and a table and 
chair set made of Baccarat crystal. J.Y. 


link with Singapore, a priva- 
tized infrastructure project 
that is spinning off new 
businesses. 

To cost around 1.6 billion 
ringgit, the bridge will com- 
plement the existing cause- 
wav. The franchise for 
building the 2.5-kilometer 
bridge has gone to a unit of 
the Renong Group. UEM. If 
the government were under- 
taking the project, the Trea- 
sury would simply provide 
ihe capital. With the private 
sector, money has to be bor- 
rowed and borrowing costs 
affect the feasibility of a pro- 
ject especially as the gov- 
ernment has set a low toll 
charge for the bridge. 

UEM was worried that the 


venture between executives 
of the Betjaya Group and 
Britain's North West Water. 
Its franchise for operating 
and maintaining the network 
lasts for 28 years, after 
which the government has to 
decide whether to continue 
with Indah or open the busi- 
ness to others. 

Soft loan for repairs 
Indah estimates that it will 
need to spend S2.2 billion to 
bring the rickety network up 
to scratch. As something of 
a consolation prize. Indah 
was given a soft loan of 
SI 80 million. The govern- 
ment reckons that S3. 6 bil- 
lion needs to be spent to 
modernize the system and 


expand it to cover the whole 
country. 

Less than half of urban 
households in Malaysia are 
now connected to a central 
sewerage system. Indah in- 
tends to raise that to 100 per- 
cent The government esti- 
mates that 1 6 percent of rur- 
al households discharge 
sewage directly into streams 
or rivers. Indah will seek to 
persuade all householders to 
dispose of their sewage safe- 
ly. “We are convinced we 
can make a reasonable re- 
turn over the concession pe- 
riod," says David Chew, In- 
dah's managing director. 

As with all of Malaysia's 
other privatizations, staff af- 
fected received the option to 
transfer to the new franchise 
holder. No one was dis- 
missal or had to take a pay 
cut in accordance with gov- 
ernment rules. 

There was no stampede to 
take over the sewerage oper- 
ation, but there was one 
when the government start- 
ed handing out licenses to 
become an Independent 


Power Producer, or IPP/- 
Within a matter of months, .* 
five Malaysian companies 
were picked to build power, 
stations. % 

Malaysia reckons it will., 
need a capacity of 25,000^ 
megawatts by the year 2020; 
up from 6,155 megawatts 
now. The bulk of that will 
come from IPPs. “Malaysia 
will have more generating 
capacity from IPPs than any 
other country in the world." 
says Robert McWhinney. di : 
rector of regulated industries 
at Arthur Andersen & Co, 
which advised Kuala 
Lumpur on its IPP program. 

Comrades, not rivals 
Hie IPPs will sell their pow- 
er to Tenaga Nasionai, for- 
merly a government depart- 
ment and now a privatized 
electricity company. Tenaga 
may be asked to allow trie 
private sector to get in- 
volved in transmission and 
distribution as well as gener- 
ation. 

Tenaga views the IPPs as 
comrades rather than rivals. 


STRENC TH IN DIVER 


O erjaya is a Malaysian-based con- 
[ J glomerate with assets totalling 
over US$2.4 billion, turnover of 
USS960 million, and a staff strength 
of 1 3,000. 

Both in Malaysia and in countries 
beyond its native shores, Berjaya has 
demonstrated a unique formula for 
business success. 

Now we seek further opportuni- 
ties for successful joint-venture part- 
nerships, both in our core businesses 
as well as in new, hitherto unex- 
plored business arenas. 

If you are considering entering or 
expanding in Asia, talk to us: we may 
be the right partner for you. 

TOt CKOUM flNANCUU. HIGHLIGHTS 



CONSUMER MARKETING 

• Singer Malaysia: wide range of household products under world- 
renowned Singer brand. 

• Onza Malaysia: body care, household cleansing & detergent 
products. 

• Ccsv-sy Malaysia: direct-selling of cosmetics, health supplements 
arc fash-on accessories. 

• HW: Exclusive licensee to distribute Warner Bros. Walt Disney, 

Sesame Street and Columbia Tnstar home 
video products. 


k'J 


21.1 

Twimna 


fVrtu Total Total 

fTofil itinhoUm'i Cafxul 

rn 1 Fundi 


TouJ T.jUl 

Aiwn NijfttM, o l 

Dnpir>*rt 


For full corporate inlormation. 
please contact: 

Berjaya Group of Companies, 

Group Investor Relations, 

Level 16, Shahzan Prudential Tower, 
jalan Sultan Ismail, 

50250 Kuala Lumpur, Malaysia. 

Tel: 603-2 42 2622/242 3155. 

Fax: 603-244 4334. 

Telex: MA32411 BCBKL 


GAMING 

• Sports Toto: totter, operations in 
Malaysia. 

• Ber|a>a Lottery Management IKK): 
Lottery management jenncss .r. China. 
Philippines & other countries. 


LEISURE 

• Over 20 hotels, resorts, golf ard recreation 
clubs in Malaysia and ether regions. 

• Provides travel & tour services, a-r and sea 
transportation and leisure cruises. 

•Vacation time-sharing packages. 

• Mirage Universal De M:sicnes SA: f : rst pn- 
vately-owned casino to operate in 3 uerto 
De Iguazu, Argentina. 

• Construction and operation of K : shkinta 
Theme Park, Madras, India. 

• Berjaya Mount Royal Beach Hotel. Sr: 
Lanka. 

• Berjaya Le Mome Beach Resort & Casino, 
Mauritius. 

• Berjaya Hotel, Fiji. 

• 3 hotels in Seychelles: 

- Berjaya Mahe Seach Resort e* 

Casino 

- Berjava Beau Vallon Bay Beach 
Resort & Casino 

- Berjaya Praslin Beach Resort. 



BERJAYA 

BERJAYA GROUP BERHAD 

BERJAYA INDUSTRIAL BERHAD 
BERJAYA LEISURE BERHAD 
BERJAYA SINGER BERHAD 
BERJAYA SPORTS TOTO BERHAD 
TOPGROUP HOLDINGS BERHAD 
UNZA HOLDINGS BERHAD 
BERJAYA HOLDINGS [HK] LIMITED 
INTERNATIONAL LOTTERY S TOTALIZATOR 
SYSTEMS INC. 



OTHER INTERNATIONAL VENTURES 

• China: 

-Infrastructural, propertv Si real-estate development. 

•USA: 

-International Lottery & Totalizator Systems, a 
\ASDAQ-quoted company, manufacturing compu- 
terised ticketing r, stems and lottery management. ! 

-Roasters Corp., franchiser of Kenny Rogers Roasters ■ 
Restaurants. i 

-Satellite Technology Management, inc,. a NASDAQ- : 
pLOted company, specialising in the design, manu* i 
facture and marketing of satellite and radio commu- 
r.'Cations products. 

-Roadhouse Gr:!!, Inc., operator and franchiser of 
Roadhouse Grill service restaurants. 

• Solomon Islands 

-Legging rents to over 600,000 hectares of forest 
concessions. 

-Development of an integrated timber processing 
compiev 

• Hong Kong; 

-Beriaya Holdings fHK) Ltd, a property investment 
company quoted on the Hong Kong Stock Exchange. 

• Asia-Pacific: 

-Exclusive rights for Kenny Rogers Roasters Restaurant, 
an American fastfood chain. 


; INDUSTRIAL b 
■ INFRASTRUCTURE 
S DEVELOPMENT 

• Inokorm Joint venture with 

— Hyundai Motor Co. (Korea i 
to manufacture light commercial 
vehides. 

•Indah Water Konsorlium: 28 years 
concession rights to upgrade and 
operate a nation-wide sewerage treat- 
ment system. 

• Timber Division: timber concessions 
and manufacture of top quality 
timber products. 

• TopGroup Holdings: manufactures 
and distributes commercial and home 
air-conditioning systems. 

• LeRun Croup: manufactures bicycles - 
for Mafaysian and export markets. 

• Textile Division: fully integrated tex- 
tiles and garment manufacturers. 


PROPERTY 

Commercial properties. 

Development of residential and 
commercial properties. 

Development of holiday resorts, golf 
courses and country clubs. 


FINANCIAL SERVICES 

1 Insurance companies: 

- Berjaya General insurance 

- Berjaya Prudential Assurance 
' Securities brokerage firms: 

- Inter-Pacific Securities 

- Eng Securities 

- United Traders Securities. 




Mm 


I Sri Ani Arope, the iy.ee- 
i chairman of Tenga, 
“We would like tosre- 

I a win-win situaion 
re every party invoked 
get comfortable retuns 
the power generaton 
L ^ss." 

aysia hopes to becoae 
: power generator 
an. It has a god 
aly of natural gas for fill 
will have five exper- 
ower producers one 
projects are up ant 


3est Res 


running. Finding finance !■ -r 
private power generation 
does not seem to be a prob- 
lem. 

•The Malaysian financing 
community has the ap- 
petite,'* says Astaman Abdul 
Aziz, managing director of 
Sikap, pan of mini-con- 
glomerate Malaysian Re- 
sources Corp. Berhad, 
which was the second com- 
pany to receive an IPP li- 
cense (YTL Corp. was the 
first). S.A. 



pom an Island ip Pahang Sate is where much of the 
i “South Pacfflcf .was filled in the 1950s. i loman is 
I a pristine tropical paraefis island, smothered in virgin 
^ngle and fringed with wh'rte^nd beaches and coconut 
Jms. Diving and snorketingpre especially good. The 
iree-hour hike across the mJdle of the island to Juara 
3Bch is recommended Accommodations range from 
ie modem Berjaya Tioman bach Resort, with its own 
course and tennis courts,*} modest beach hunge- 
rs. Get there by tvgh-speedeny from Mersing or di- 
: flights or feny from Singapoe. J.Y. 




. •• t- 

' V' •’ 




message 
FROM THE 
GROUP CHIEF 
EXECUTIVE 
O FFIC E R 


In recent years, Malaysia hasten an 
unprecedented growth resulting fr*, ma n v 
factors including sound managemen-by our 
govemment, the country's good worries, a 
readily trainable workforce and strong vestors’ 
confidence. •' 

Berjaya has also responded to and tnefited 
from this conducive business dimate -rough 
expansion, acquisitions and new start ups 

Our commitment to buHding expert? an d 
quality through training and embracing hhn 0 - 
logy, has given us a strong foundation to remind 
to new opportunities, not just, in Malays but 
overseas too. , 

We will continue to develop our core.usi- 
nesses and respond to our government's ans 
and visions for Malaysia. 

As we embark on another important pha C f 
growth, we .wifi continue to' pursue busK ss 
alliances through joint ventures and partners 
I believe we are good business partners, so if !hj 
have the desire to expand' into Malaysia or h, s 
international ventures, do give us an opporturv 
lo work with you. 

Yours sincerely. 



''Jet* 


I 


Tan Sri Datcf WncerifTan dies Yimin 


- "ki 


■- AK 









spoN^oui-.n sr r no\ 


•.--•»;'j»;^ : -jj».»,w.:-... '^,- x . - - • - • -• - ;• * ,• -,. • xr*- ?**&&& 


■ Ss&S -x. : > i-tiKi* 



Going Green: Ego^urism Makes a Hrr 


Orangums. mrttes, bats, dephams cmd oners are >§ man> . mn , ra/ OTrafnonJ o/ffe „ a „ 0(!0 , ^ 

/\dveoture-traveI enthusi-’ ejrroty. There are hundra , . . , D . , , 

asisand nature Iovere from of Sffshore islands - fr ^^% n P „T Ue ? £ U ,T' The b 'S cha " 
around the globe will de- tiny specks of sand in * for ev “> one ho1 * "™ £ 1 

scoid on Sarawak in Ooo- South China Sea to la! ™ e of bos a 

her for a emeline comped- historic enclaves It ot .. *?' P. la “ s “ "ew white albino snake 


around' the. globe will de- 
scend on Sarawak in Octo 
ber for a grueling competi- 
tion colled the Raid Gaukws- 
es, which includes jungle 
trekking, white water rafting, 
cave exploration and moun- 
taineering. - 

This is the first time the 
competition Will be staged 
in Southeast Asia, but Raid 
organizer Gerard Fusil says 
of Malaysia: “It is undoubt- 


Penang. 

And Malaysia, offeij 
wide range of places to si 
from Dayak longjhouses <j 
'simple beach bungalows 
jungle lodges, arid, glitzy . 
sorts. 

Rain forest tidies 
Despite reports to the ci 


edly the ideal adventure . trary, Malaysia has retail] 
land, probably one of the much of its primary rain I. 


world’s most beautiful 
places.” 

Malaysia has carved a 
niche for itself in adventure 
travel and “green” tourism 
over die last few years, with 


est, protected within the c«. 
fines of a large national 
system. In these parks, v. 
tors can descend into \ 
world’s biggest cave systi 
or scale the highest mot 


visitors flocking to experi- tain in Southeast Aria. Tt, 
ence its diverse natural land- can mb elbows with orai 


scapes and tropical wildlife 
populations. : 

Of the various reasons to 
visit Malaysia, natiire is one 
of die most compelling. The 
country ' has some of the 
finest beaches in Asia, and 
most of them are virtually 


utans in their native hab* 
or watch giant sea turtles ■ 
their eggs on the beachi 
night. 

The oldest and most . 
mous national park is Tan, 
Negara, a massive jungle £ 
at the geographic heart f 


the Malay Peninsula. There 
is something for everyone in 
this huge game reserve, one 
of the best places to view 
wildlife in Asia. 

A number of jungle walks 
loop out from the park head- 
quarters at Kuala Tahan. 
where there is a luxury jun- 
gle lodge, youth hostel and 
campsite. The trails are well- 
marked and easy to negoti- 
ate. Those with more time 
and stamina can trek to Gu- 
nung Tahan, the highest 
peak in peninsular Malaysia, 
through 6, 000-year-old’ vir- 
gin forest, a walk that takes 
about eight days. The variety 
of wildlife is astounding: 
tigers, elephants, rhinos, gib- 
bons, leaf monkeys, wild 
pigs, deer, otters, flying fox- 
es and myriad tropica] birds. 

For those who like to get 
down and dirty, Taman Ne- 
gara also offers cave adven- 
tures in places like Gua 
Telinga, which can only be 
entered on hands and knees. 
Wearing white clothing is 
not advisable: the floor is 
covered in lichen and bat 


Pipe Dreams May Come True 


State-owned oil company demonstrates an ability to t effectively as a private concern. 

P etronas, Malaysia's na- network. Just like a priv? petronas’s failure earlier this and sc 
tional oil company, is ambi- company, Petronas is lew year lo bear Saudi Arabia’s that hi 
tious. In a recent deal in aging its experience at hot Aramco in the bidding for subsid 
Australia, Petronas part- to break into mark*, 40 percent of Petron, the ket~i 
nered Canada’s Novacorp to abroad. In Malaysia, it r re biggest oil refiner and petro- was li 
obtain a 24 percent stake in ages a 770-kilomet leum products retailer in the and its 
tbe 1300-kilometer pipeline pipeline built to link ci- Philippines. Petronas bid pany 1 
that brings gas to Sydney ‘ tomers in the south of t; S421 million, Aramco $502 nexty 
from the Cooper Basin in peninsula to the major g million. stay ii 

South Australia. The stake ; fields in tbe north. “We just weren’t prepared As ; 

will cost cash-rich Petronas Within the next two yea to pay over the odds,” says a Petron 

around 130 million Aus- Petronas will have l,3i top Petronas executive. surinj 

tralian dollars ($95.7 mil- kilometers of pipeline unc enoug 

lion). It will also give the management. It hopes 1 Leader in profitability speedi 
Malaysians a chance to es- parlay its pipeline kno' For a company run by civil is incr 
tabhsh a track record in Aus- how into a big share of t servants, Petronas is remark- year. 
tr&Ila, where other big proposed 8.000-kilomet ably good with money. For- Full 
pipeline projects are coming trans-ASEAN gas pipelir. tune, the leading business the na 
to market soon. a project that would link » magazine in the United -rathe 

This will be Petronas’s buyers and sellers in Indor States, has ranked Petronas petite 
second partnership with No- sia, Malaysia, the Phili- first among major oil refin- what ] 
vacorp; two years ago the pines, Singapore. Thailal ers in terms of profits as a foreig 
two won a $33-milIion con- and Brunei. percentage of sales. Petronas Pe 

tract to privatize part of Ar- The Australian dei is the only local company to wholl 
gentina's gas distribution helped draw the sting firo make the Fortune 500 list of Carig 


Fancy an authentic gramophone? Or maybe a tum-ofj 
the-centary Peranakan table with a wooden base and- 
marble trip? Perhaps alow cons scavenged from wrecks 
off the coast of Sumatra? Then old Jonkers Street (Jalar 
Hang debar) in Malacca is the place for you. There arcj 
dozens of antique shops with merchancfise ranging from 
pure junk to 300-year-old museum pieces. One of the 
best selections is at Fatimah Anfflc Star at No. 46, where 
the upstairs rooms have been converted into a showcase 
of Peranakan antique furniture. J.Y.j 


Petronas’s failure earlier this 
year to beat Saudi Arabia's 
Aramco in the bidding for 
40 percent of Petron, the 
biggest oil refiner and petro- 
leum products retailer in the 
Philippines. Petronas bid 
S421 million, Aramco $502 
million. 

“We just weren’t prepared 
to pay over the odds.” says a 
top Petronas executive. 

Leader in profitability 
For a company ran by civil 
servants, Petronas is remark- 
ably good with money. For- 
tune. the leading business 
magazine in the United 
States, has ranked Petronas 
first among major oil refin- 
ers in terms of profits as a 
percentage of sales. Petronas 
is the only local company to 
make the Fortune 500 list of 
the world's top industrial 
companies, ranking 237th. 

Says Azizan Zainul 
Abidin, president of 
Petronas: “The fact that we 
are very liquid has enabled 
us to raise additional funds 
for investment at much 
cheaper cost.” Again. 
Petronas is thinking like a 
private company. 

But Petronas is not likely 
to become one any time 
soon. Kuala Lumpur’s view 
is that Malaysia’s oil and gas 
fields belong to the people - 


and so should the company 
that harvests them. Petronas 
subsidiaries will go to mar- 
ket - its chain of gas stations 
was listed earlier this year, 
and its gas distribution com- 
pany will probably be listed 
next year - but Petronas will 
stay in government hands. 

As a national enterprise, 
Petronas is charged with en- 
suring that Malaysia has 
enough oil and gas to fuel its 
speeding economy. Demand 
is increasing at 10 percenr a 
year. 

Fulfilling its mission as 
the national energy provider 
- rather than meeting its ap- 
petite for business deals - is 
what propels Petronas into 
foreign oil and gas fields. 

Petronas. through its 
wholly owned subsidiary 
Carigali Overseas, is 
prospecting for new hydro- 
carbon treasure in Burma. 
Vietnam, China, Indonesia, 
Thailand and Syria. It has 
interests in fields in Azerbai- 
jan and other Central Asian 
states. 

But Carigali prefers to 
search for new fields nearer 
home. Mr. Azizan says that 
“nearer means closer con- 
tacts. If we find fields that 
can be developed, then we 
can capitalize on the re- 
sources that are available at 
home.” SA. 



MALAYSIA i 
SUMMIT J 
MEETING 5 
I 9 9 4 ?. 


CONVENED BY 

HcralhrfgJfcSaibttnc 



in association with 


OFFICIAL HOTEL 

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Shangrita hotel 

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THE 1994 MALAYSIA 
SUMMIT MEETING 

KualuropOT - November 21-22 1994 

A MAJOR SUMJVIT ON TRADE AND INVESTMENT 
OPPORTUNITIES IN MALAYSIA 


The Summit Meeting ai* 10 define the state of the Malaysian economy and 

highlight opportunites^ cooperation. 

The speakers indude 1^ Minister Dr. Mahathir, members 

of his cabinet and prori« nt ^ ures from both the Malaysian private sector 

and the international t^ iness community. 

The Summit forniat off,5P resent and Potential investors 
a unique opportunity fr”’ de P th dialo « ue Malaysia's decision makers. 

This prestigious forum T° u with an ideal occasion to 

develop relationships leaders of Mala y slan government and business, 

as well as pursuing nev» existir « business interests in Malaysia . 

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interaaflonal Herald Tri^M RM(J , 

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SUMMIT SPONSORS ^ " - 


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guano. The big chamber 
hoick many surprises - thou- 
sands of shrieking bats and a 
white albino snake that 
preys on the winged mam- 
mals. 

Hard-core cavers head for 
Sarawak, where some of the 
world’s largest and longest 
underground chambers are 
found. Niah Cave is famous 
for its swallows' nests and 
prehistoric archaeological 
finds. 

The most awesome cav- 
erns are in Gunung Mulu 
National Park, which could 
figure in a Guinness Book of 
Underground Records. 
Sarawak Chamber is the 
world’s largest single cave, 
large enough to hold 40 jum- 
bo jets. Clearwater Cave is 
the longest cave system in 
Southeast Asia, with nearly 
60 kilometers (40 miles) of 
passages. Deer Cave is 
thought to have the world’s 
largest cave passage, more 
than 100 meters w'ide and 
120 meters high. 

You can also trek the other 
direction - up instead of 


... . 1 












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Welcome to adventure: Galloping Bajzn horsemen make a splash in Ssbafr. 


down - by scaling Mount 
Kinabalu in Sabah? with an 
altitude of 4.101 meters i 13. 
455 feet). 

The Kadazan tribe consid- 
ers it a sacred place where 
spirits live (the name means 
“Revered Place of the Dead” 
in the Kadazan language 1 . 
The ascent of Mourn Kina- 
balu takes two days, with an 
overnight stop in cozy huts 
near the summit. Guides are 
obligatory and can be lured 
at the park headquarters. No 
special climbing equipment 
is required. Those who want 
an even suffer challenge can 
try the annual Kinabalu Run. 
a sprint to the summit that is 
usually won by Gurkha 
troops from Nepal. 

Thermally heated pools 

Rest your weary' bones after 
climbing Mi. Kinabalu hv 
diving into the hot springs ai 
Poring in the southeast "por- 
tion of the same national 
park. The spring was first 
developed by homesick 
Japanese troops during 
World War II. Thermally 
heated water rises directly 
from the ground, piped into 
small pools where you can 
relax with your Walkman 
and a cold beer. There are 
overnight huts for those u ho 




want to s oak in ihc- The 
raiflesia - the world's 
largest flower - oi corns in 
the nc.ec\ jungie. 

Sabah is iceai for 
cio>e encounters of me ar.i- 
mai kir.d. Sepiiok Forest Re- 
serve near SandJsan is prub- 
abl> the best place m the 
world :o >ce •••ranguluns in 
me wild. i:i a huge jungle 
tract that has been a rehab i I i- 
!at:.:*n -.enter for the great 
apes hir.ee -irA Orangutan 
orphan- and rcN -re wrought 
nere to grudualls introduce 
mem back into die wild. The 
young ones ieam survixal 
skills from hur.iur. rangers, 
who leach mem tree climb- 
ing. One swinging and other 
vital jungle oris. 

An hour's speedboat ride 
from Sandakan is the isolat- 
ed Turtle Islands National 
Park, three desert islands set 
in the aquamarine waters of 
the Sulu Sea. Se linear., the 
largest island, has all the ele- 
ments of a tropicai paradise 
- coconut pa'ms. sandy 
beaches, a protective coral 
reef, sources of fresh water 
and mode>i beach bunga- 
lows. Tourists wishing to 
visit the Turtle Islands must 
make prior arrangements 
with the national parks 
board office in Sandakan 


iP.O. Box 768) and must 
bring their own provisions. 
The only way to gel there is 
to charter a boat on the San- 
dakan waterfront. Not many 
people make the journey, 
which is one reason that 
hundreds of green and 
hawksbill turtles continue to 
lay their eggs on the beach 
each night. 

Around the eastern side of 
Sabah is a highly unusual is- 
land called fhilau Sipadan. 
Tr.e island is generally con- 
sidered to offer one of the 
world's great diving experi- 
ences. Sipadan is a huge 
limestone mushroom that 
rises 600 meters ( 1 .300 feet) 
from the seabed. There are 
numerous underwater caves 
and cliffs to explore, and 


marine life is abundant. 

For a more relaxing eco- 
holiday. there are the old 
British "hill stations of penin- 
sular Malaysia. The 
Cameron Highlands are the 
most famous and also the 
most civilized, with numer- 
ous hotels, an lS-hoie golf 
course and even an ancient 
British pub called Ye Olde 
Smoke House. 

But Fraser's Hill is proba- 
bly the best hill station irom 
a nature lover’s point of 
view, a perfect escape from 
the hustle and bustle of the 
modem world. Don't expect 
anything fancy - nothing 
more than jungle walks, 
horseback riding or a putt 
around the nine-hole golf 
links. J.Y. 






i 

Choosing the best beach in Malaysia is a tall order be- ■ 
cause there are so many nice ones in the country. Still, ' 
most of them have their faults: too narrow, too crowded, 
too rocky. But north of Kuan tan in Pahang State is an al- r 
most perfect strand: the long and solitary Cheraiing 
Beach. Almost 50 meters wide in places, it has powdery > 
white sand, a backdrop of swaying casuarina trees and a j 
steady breeze. Cherating is rated as one of the 10 best ^ 
places in the world for windsurfing. J.Y. * 




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For the fifth straight vear, Malayjis's &tor,orr.; ^rew by 
mare chan 8«. Over the same period, rrunuiacruring output 
expanded by K.7%. Today, manufactured goods account for 
70% of export earnings. A booming industrial economy needs 
an increasing supply of energy. 

As Malaysia's first independent Power r reducer. YTL 
will help meet the country’s growing power demands as it pro- 
gresses towards full development and economic maturity. 

Since 1955. the YTL Group has been a leader ;r. the devel- 
opment Of the infrastructure so necessary tne cor.iinued 





successful expansion cf Malaysia's economy; in construction 
contracting, property development, hotels and resorts, manu- 
facturing and power generation. 

We are now taking our expertise to the Asian regun, 
where an additional 278 million kW of electricity will be need- 
ed by the year 2000. 

li you are looking to become part of 
the regions bright future, talk to us. 

Working for the advancement g §| 

of infrastructure since 1955 m jcljb c 


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UVTERJSATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


Page 13 




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LONDON — Volatile iinan- 
dal marke ts oil second-quarter 
earnings at tine Babpean Bank 
for RocmistrotfKfo & Develop-, 
meat nearly in haH* compared 
with the previous quarter, data 

published Tuesday showed. . 

;EBRD r :>hich was estab- 
lished to. help zber -countries . of 
Eastern European^ the former 
Soviet Union in the mutation 
from central planning to mar- 
ket economies, sod operating 
jjrofit before provisions for bad 
dgbt feHtoi-5 million Earope- 
an Currency Units (S2 nulfion) 
from 2 S nrillian Ecns in the 
first quarter. : 

-Banks worldwide smuggled to 
cqpe with sharp swings m wodd 
f jonivjal TTMiTWtfK hi the second 
quarter of the year, and. EBRD 


AhmdsseNet 
l Doubles in Half 

hi — 

Bloomberg JhoiMsr Neta _ . 

* ZURICH — Ahrmisse- 
Lonza Group said net prof- 
it in the first half of 1994 
almost doubled, to 95 rafl- 
;lion Swiss francs (S71.4 
^nflUon), from 49 miThn n- ~ 

• Theodor Trofaopp, chief 
^executive, said improve- 
*ment resulted freon strate- 
gic reorientation, cost-cut- 
ting and the indusaan of 
'the Canadian packaging 
' unit Lawson Matdon. 

Alusuisse said it expected 
'net profit in 1994 to double . 
Jrom 83 million francs. 


wasnot immune to the probli 

The bank had a loss on f man ,ach disbursement for a loan or 
operations of 5.6 mininn share purchase most be accom- 

the second quarter, after a pr , i anied by a loss provision of a 
of 751,000 Ecus in the Curst 'pPedfic sne. “The more success- 
or The fall in trading profit P 1 ^ bank is in getting dis- 
■towod a shift inrnvestine’“ rse * !0,e,lis o«t of the door, the 
from bonds into stocks, cash ^8 ber d* provisions,” he said, 
money-market instruments Loans and advances, for ex- 
. Chris Hdyaak, an rose by nearly 100 nriJ- 

spdkesman, said the trading f on Ecus “ second quarter, 
was “a reflection of very advt? million Ecus, and this 
conditions in the markets." 130 caus ®d related loss provj- 
Tbis caused first-half n‘ ons os® to 3.6 million Ecus 
profit before provisions to sPS? ^ mfllion Ecus, 
to 4.48 milli on Ecus from 1 Sm urany> provisions for 
mfflinn Ecus a year earlier stock investments rose 

Profit after provisions ’ i* 0051 to 4 million 

took a blow. Mr. Hdyoak sf™ ™ *£* «cond quarter, 

tkuswas the result of increase Ea “ Grs . L 

emeral r>mvi<annc losimi i~ EBRD reduced I is fixed-in- 


^ Sterling Sale Offers 
Falls Golden Opportunity 

For Bayer Reunion 

I loss provision of a J 


FRANKFURT — Bayer AG might have the opportunity 
to regain the U.S. rights to the Bayer-brand aspirin business, 
which it lost in World War 1, but it could cost the chemicals 
company up to 5500 million to buy the Sterling Wimhrop Inc. 
unit, analysts said. 


on loans and equity investmet )mc P 01 ^ 0 ^ 0 *° ? bfflmn 

? RD «~g niles S j&rtZZiSiES. 

Karstadt Poi Sales Rise 
But Expectsywer Profit 

Btoombag Business News ^ 199^ KaiSladl had 

. . .ESSEN, Germany — Ket profit of 226.8 million DM 
stadi AG said Tuesday its fin sales of 20.8 billion DM. 
half sales rose 28 percent, to 1 After the Hertie acquisition 
hilhon Deutsche marks ($8 his stripped our, sales at Ger- 
UonX after its takeover of Henany*s largest department- 
Waren-& Kairfhaus GmbH, tore chain rose only 1 percent, 
it said ea rn i ng s for the yoalysts said. The only division 
would trail those of 1993. iat posted a significant gain 

! 5Eff &S2&1S 2°S 

that Heme is still deep m billion DM. 


S2.93 billion in cash, scuppering a rival bid from Bayer for 
Sterling’s worldwide over-the-counter business. 

Bayer said it would contact SmiihKline as soon as possible 
to see if pans of the Sterling over-the-counter business woe 
for sale. Part of the Sterling sale to SmithKhne Beccham 
includes the rights to the Bayer name in the United States and 
its Bayer cross trademark, which Sterling Winthrop has held 
since 1918. Aspirin was invented by Bayer AG. 

Bayer's chances of buying individual pans of the over-the- 
counter business may be higher now. because Sterling Win- 
throp had always wanted to sell the business as an entire entity, 
said Peter Smith, an analyst at James Capel & Co. in London. 

But whether Smi th Klin e would be willing to sell what is a 
key part of the Sterling portfolio is still unclear. 

Mr. Smith said since the acquisition would give SmithKline 
a large amount of debt to pay down it might be receptive to an 
offer from Bayer. 

Gebhard Kfagenslem. analyst at Barclays de Zoete Wedd. 
said it was obviously important to Bayer to get the Bayer 
name back. “They’ve been trying to get this back for the past 
eight or nine years,” he said. 

Mr. Klingenstein, said a deal to buy the aspirin business 
would be worth several hundred million dollars. 

Mr. Smith estimated the price would be between S450 
min i nn and 5500 millinn, including the rights to the name. 

A London-based analyst who declined to be named said, 
“SmithKhne paid three times sales for the whole business, so 
presumably it would demand about this rate for the aspirin 
activities.” Annual sales of the North American branded 
aspirin business are estimated at around SI 50 million. 

But Bayer may tty to negotiate a deal to get back the rights 
to the Bayer name and trademark without the analgesics 
business, the London-based analyst said. 

Bayer has achieved major growth in the United States 
under the MDes International Inc. name, he said. “So it hasn't 
hurt it much,” the analyst said. 


Air France 
Gets Wolf 
From UAL 


Ctmipileii by Our Staff From Dispatches 

PARIS — .Air France an- 
nounced Tuesday that it had 
hired Stephen M.'Wolf. the for- 
mer chair man of United Air 

Lines Inc. who organized the 
American carrier’s employee 
buyout in July, to advise Chair- 
man Christian Blanc. 

Last week, Mr. Wolf joined 
Lazard Freres & Co. in the 
United States as a senior advis- 
er. The French arm oT Lazard is 
one of Air France's top advis- 
ers, but a spokesman for Air 
France said there was no link 
between the two appointments. 

Mr. Wolf will advise Mr. 
Blanc, who will bead the new 
company that is bring formed 
to hold Air France and Air In- 
ter, which is now a subsidiary of 
Air Fiance. 

The appointment was made 
as the state-owned carrier em- 
barks on a reorganization 
aimed at bringing it back to 
financial health. Air France 
went into 1994 with $6.2 billion 
of debt. It has not posted a 
profit since 1989. 

The European Commission 
recently approved a request by 
tbs French government to give 
the state-owned carrier a rescue 
package of 20 billion francs ($3.7 
billion). The commission said 
that Air France could not trans- 
fer any of the funds to Air Inter. 

Mr. Wolf is opected to lend a 
hand when Air France decides 
to turn over some of its capital to 
woritere. (Ap Bloomberg) 


Investor’s Europe 


Frankfurt 

DAX 


London 
FTSE 100 Index 


Parts 

CAC40 

2300 — - 





A' M JTa 
WB4 

Exchange.. . index 


Amsterdam . 

Brussels 
Frankfurt 
Frankfurt ■ 
HelstnKl • 
London ■ . 
London 
Madrid 

MHan 

Paris 

Stockholm 

Vienna 

Zurich 

Sources: Reuters. 


AEX 

Slock index 
PAX 

FAZ 

HEX . 

Financial Times 30 
FTS6 too 
General Index 
MtBTEL 

CAC40 

Afaersvaertden 
Stock Index 

S85 

AFP 


Tuesday 

Close 

421.00 
7,638.76 
. 2,21 0.65 

831 M 
1,934.43 
2,539.90 
3J349.60 
ami 
11010 
2,06037 
1,914.32 
462-34 
937.39 


^M' A' lit J J A' : 
tee* 

Prev. % 

Close . Change 

424.60 . -0.85 
7,832.00 ,*O.Q9 

2.193.19 +0.81 

828.08 +0.45 

1.94&48 -0.72 

5.552.20 -0-48 

3,265.10 -0.47- 


312.80 +0-23 

11095- ■ . -0.77 

2,075.27 -Q-72, 

1,927.44 -0-68 

468.11 -0.17 

' 938.10 ,*0.08 

Intrmtiiuiul Herald Tribune 


Very briefly: 

■ Axel Swinger Verlag AG said net profit rose 38 percent, to 52 
milli nn Deutsche marks (S33.1 million), in the first six months of 
1994 as an improving economy boosted advertising. 

• Topdanmark A/S, Denmark’s No. 3 insurer, blamed a swing to a 
six-month net loss of 397 million kroner i$63i million) from a 148 
milli on kroner profit on major write-offs and loss provisions for 
its banking activities. 

• La fiaiva savings institution of Spain bought a 15 percent stake 
in Banesta 

• Sydkraft group registered a profit after financial items of 1.32 
billion kronor ($169.2 million) for the first half of 1994. 

• ITT Corp^ owner of the Sheraton hotel chain, made a public 
offering to acquire a 35 percent stake in the Italian luxury chain 
Gga Hotel SpA. ITT already owns 35 percenL 

Kmghi RiJder. Reuters. AP, Bloomberg, AFX 


—C.’ 

EMAGEsFor Japan’s Public Broaater NHK, the Challenge Is to Rejuvenate Itself in Ana 


KINGDOM OF THE NETHERLANDS 


Gostinted from Page 9 


that of Nippon Telegraph & 
Telephone Chip, or Japan Air- 
lines . With then positions pro- 
tected by the government, all 
developed into huge, inefficient 
ofgamzatioiis with dose gov- 
erament ties. But whereas Nl'I 
and JAL wereprivatized in the 
npd-1980s. an fl ha ve began to 
restructure, NH& remains a 
public entity, poorly structured 
to deal with changing technol- 
ogies and unbridled competi- 
tion. 


Telegraph & 


“Public broadcasting is Network, a 24-hour service to 
the way ouL” said KeijiShimhich ABC, BBC and NHK 
a former NHK chairman wLoxild supply 8 hours of 
quit tinder pressu re in 199afty programming centering 
“The outlook for NHK is nu their parts of the world. 
bririhL” . Aiming to shake up NHK's 

NHK*s oigamzational obstlow-paced news style, winch is 
des are clearest in the networloug on detail and short on 
retreat from the booming intenalvsis, he took the bold move 
national broadcasting arenf hiring foreign journalists to 
Mxi Shima, acting an a wideroduce programming in Eng- 
felt resentment that the globsh for broadcasts at home and 
media is dominated by Westei broad, 
concerns, with Western biast Soon after Mr. Shima's de- 
tried to make NHK a playearture, though, Mr. Kawagu- 
His vision was the Global Nevhi proclaimed GNN commer- 


I ti— day ’a Cio n i n a 

i Tabtes include tbo nationwide prices up to 
. the dosing on Wall Strnet snd do not reflect 
jatc trades Bteawhara. Via Vto Associated Press 


(irtiifo 1 - 


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dally un viable. The editorial 
role of foreign journalists, 
which was never fully accepted, 
has diminished. From October, 
their influence will be all but 
over as the main outlet for their 
work, the show Japan Business 
Today, goes off the air. 

“Their goal was to eliminate 
foreign editorial input into 
NHK programs as quickly and 
decisively as possible;*’ a mem- 
ber of the foreign staff said. 

Paradoxically, the changes 
come just as the Japanese par- 
liament has revised the broad- 


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cast law to allow NHK to sell its 
programs directly overseas be- 
ginning in April. In theory, that 
would allow NHK to challenge 
competitors that are operating, 
or planning, pan-Asian news 
services. These include the 
BBC, which runs a 24-hour 
Asian news service, parts of 
which are translated into Japa- 
nese for local viewers; CNN. 
the Australia Broadcasting 
Corp_ Dow Jones & Co„ and 
Bloomberg L.P. 

NHK, however, is interpret- 
ing the new law not so much as 
a chance to expand its regional 
presence as an obligation to re- 
focus its international broad- 
casting to the needs of 700,000 
nationals who reside perma- 
nently abroad and the 13 mil- 
lion who visit foreign countries 
each year. 

Mr. Soga said the main reason 
for scaling back Mr. Shima’s in- 
ternational agenda was that for- 
eign partners were lukewarm to 
the GNN concept. That makes it 
unviable because NHK cannot 
afford to go it alone. 

Unlike its Western rivals, he 
said, NHK faces a formidable 
language barrier. Few people 
outside Japan speak Japanese 
and translating into English or 
other languages is a costly, la- 
borious process. Moreover, the 
legacy of Japan's wartime 
atrocities has made its neigh- 
bors uneasy about an invasion 
of Japanese television. 

Sensitivity to its neighbors, 
though, has also put the credi- 
bility of NHK’s news, and the 
viability of an international ser- 
vice, into question. Critics 
charge that the network is soft 
on issues such as the Tianan- 
men incident, East Timor or 
anything else that would offend 
| China, Indonesia or other 
neighbors. 



Announcement 


On September 1. 1994, the Minister of Transport 
Public Works and Water Management of the Nether- 
lands will start a public call for tender for the purpose 
of selecting a licensee for the installation and opera- 
tion of a second GSM network in the Netherlands, 
based on the Telecommunications Act, as amended 
by the Law on! 6 June 1994. 

The Minister intends to grant two licences; one licence 
to Konrnklijke PIT Nederland N.V. and one licence to 
a corporate body that will be selected through this 
, tender procedure. 

Those who wish to acquire the licence for the instal- 
lation and operation of the second GSM network 
must apply for a licence by submitting an application, 
that in any case indudes a technical and commertial 
plan for the installation and operation of the proposed 
network. 

1. Submission of the application. 

The tender procedure is described in a tender doc- 
ument. The application must be submitted in ac- 
cordance with the requirements concerning struc- 
ture and composition, as described in the tender 
document under the payment of Dfl 25,000.-. 

The dosing date for the submission of the applica- 
tion and the payment is 1 December 1994 at 2.00 
P.M. local time. 

An applicant may submit only one application. 

An appficatior w3 oniy be taken into consideration 
ifc 

- the tender document has been requested and 
Dfl 500.- has been received; 

- an application has been received which complies 
with the requirements according to the tender 
document 

- the application has been received not later than 
1 December 1994, at 2.00 P.M. local time. 


- a payment of Dfl 25,000.- has been received 
before 1 December 1994, at 2.00 P.M. local time 

2. Request fora tender document 

A tender document will be sent only if a payment of 
Dfl 500,- has been received. 

Written requests for the tender document Have to 
be forwarded to: 

The Minister of Transport Public Works and Water 
Management 

c/o Mr. P. van Dullemen, Notary 
Pels RIjcken & Droogleever Fortuijn 
P.O. Box 11756 
2502 AT The Hague 
The Netherlands 

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bank account number 223872385, 

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4. Duration of the Licence. 

The Licence is valid for a period of 15 years. 

The Hague, 31 August 1994 

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A. de Ruiter 




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trowth in Japai 
Wghtens NEC’ 
’rofit Outlook 

iWL. a. p.jt r-_. n. f 


obless: Hope in Japan 

fith Data High, Analysts See Reversal 

CyMfy Qvr Staff From Dishes 


: v ' ' by Ow Staff From Dupaicha 

■OKYO — NEC Corp. said 
■feday it was revising its eam- 
9 forecast upward for the 
Vent year because the ew 
B** c recovery in Japan has 
•eased demand for personal 
■nputers and semiconductors, 
•he electronics and technol- 
V concern said it now expect- 
■group net profit for the year 
■djng March 31. 1995, to rise 
■70 billion yen (S700 million). 
W percent more than its previ- 
u* forecast of 60 billion yen. 

raised its sales forecast to 
76 trillion yen from 3.72 trii- 
>n yen. 

NEC, which has more than 
percent of Japan's personal- j 
mputer market and is the ■ 


i . 

\ : L 
f ■ ~ 


f Boycott Hurts 
wChhui Airlines 

1 Bloomberg Business Sews 

tgF.. Taipei — China ait- 
. Taiwan’s flag carrier. 

- net profit for the first 
naif of 1994 plunged 77 
! Percent from a year earlier. 

milh’on Taiwan 
dollars f$n million). 

The company said profit 
was hurt by a tourist boy- 
cott against mainland Chi- 
na this spring and by rising 
, interest rates. 

Sales for the first half 

• rose to 21.3 billion dollars 

! -0-S billion dollars. j 

• China Airlines’s earnings 

; nave been falling since 1 991 
as competition from other 
earners has lowered profit 
margins, analysts said. 

• Separately. China Motor 
Coro.. Taiwan’s biggest 
fnick maker, said net profit 
m its first half fell 7 per- 

«mi- to I. IS billion dollars. 
Hie company blamed the 
nswg Japanese yen. | 



country’s largest semiconduci 
said maker, returned to profit h 
am- year from a loss of 45.16 bilfr 
the yen the year before, which 
eco- company attributed to nr 

has sales and a strong yen. ■ 

onal The company said it expeci 
tors, favorable demand would com 
nol- ue m the second half of the a 
ect- rant year, but it warned that i 
pear change rates remained 

^cem. The rapid appreciati 

M). ^ yen against the dollar i 

evi- hurt Japanese exporters bv 
n. creasing the prices of their p 
1 to duc jsand reducing the value 
riJ- P^fits brought back to Japan 
An NEC executive said: 
i an 1 w i J any to latest ea 
al- H!® s , l % ecast on die assumpti 

the dollar would avenign05v 

m the first half of tte , 

-I 

ualk The previous forecast vB 
based on a dollar rate of 105 ufl 
for the full year, S/ 5 * 
NEC produces many of ™ 
semiconductors overseas, wh 
givM it some protection fir® 
“^change-rate movements. B 
Nfcc has dominated Japa^B 
personal computer marketw® 
a proprietary design, but h® 
“mpr departure it said [® 
week that it was consider™! 
selling some IBM-coinpaii®, 
computers in Japan. ®l 
Analysts said the revisit®^ 
justified in view aft® 
rebound m demand for NE<H 
semiconductors and perso^B J 
computers. “Demand f<Jmen®f 
n« is booming,” said Da- 

a .J (Japan) Ltd. “And on the^ 
pile, its expectations were on 
ow ade, and they are doing t®“5 
*er than they thought.’’* °Vni 
For persona] compare®. 1 ' 
however, analysts said tj 
while NEC sales were Wr 
growth was not as strong as «®qi 
other companies, such as Co®^ 
paq Computer Corp. or Im® 

national Business Machi®?.? 

Corp. s IBM Japan Ltd. uS!®^ 
(Bloomberg, Reuters, A 


Japan to Aid 
Firm Tied 
To Pollution 


Hong Koto 
HangSehg':- 

1MQD- — ^ 


StraflaTrfriM 1 


tesafstesana 

®he unemployment rate reached 3 percent 
■^/nTr 2 - 9 ^™ 1 “ ^ the mS- 

®^,f5 d »fc C °° rd ^ iatl0n Aficccy said This 
ytefaed the second-worst postwar figure. 

®. m 5P ased 290,000 from a^ar 

■her to 1.9 million. the agency said * 

ISS? ***** International econo- 

Bfl^n^i? himan,0to said toe employment 
■ation will not worsen much beaiusethe 
■noray is improving. “ e 

Bit is certain that the economy is heading 

bul “employment rate 
ft lagging indicator and moves behind the 
■ual economy, said the chief cabinet secre- 
cy, Korol^h. “For the time bdnt 
|ere conditions are expected to continue.” 

Btebilizuig the labor market is a vital issue, 
^government will continue to takeSS 

=§a£S^sswS 

^ surpass its record high of 
percent reached in 1987 . 

[ The July. jobless rate compared with 6 l 

the foSrS* 83 paceat j 


. Masui » a Tokai economist, 
said the rate could climb as high as 33 ner- 

be moderate. “The underlying trend in 
sidcways or 5bghl,y 

* he . ther “tion’s 

“pwards or coming 


zzznzr r ,D juj * down 0 01 percentage 
pomt from June and the lowest since 1987. 

Ubor Minister Manso Hamamoto said the 
raho of newly created jobs to new job seekers 
JW^£P nlh July rose to 1.09 from 1.06 in 
June, the second consecutive monthly increase. 

ri -J Vs . *5 new job ratio is a leading index, the 

braded^SJSf e “S oyment situation is 
Deaae<1 for a recovery, he said. 

Mr. Shimmnoto said, however, that a recov- 

Si? snbstanda I in the 

gJ^»«OTbecause of the yen. That situation 

-tassrr 

that for women ako 


S Ream 

•ala LUMPUR— Bank 
■putra Malaysia Bhd. said 
■Jay its net profit soared 
■old in the year ended 
K i 3 i , OT successful recov- 
V bad loans and strong per- 
Mces by its brokerage and 
■nan t-banking units. 
l^Bi^putra reported net 
It of 450.1 mflhon ringgit 
F mflhon) for the year 
(Jared with 80.6 million 
lit the year before. That 
l*yj result was itself a 90 
fnt improvement from the 
lous year. 

fetax profit rose to 318.2 
ton ringgit from 50.7 mil- 
ring gi t 


Bumiputra Profit Soars 

The banirino .1 _ _ 


I Bloomberg Business News. 

TOKYO — Japan’s govern- 
ment has started negotiations: to 
bail out Chisso Corp., whose fi- 
nances have been unpaired by 
oompensaticra payments to vic- 
tims of mercury poisoning. 

The government of Kuma- 
moto, on the southern island of 
Kyushu, has already been buy- 
ing Chisso’s bonds to help pro- 
vide the company with money 
to pay compensation. So far, 
the company has sold 71.1 bil- 
lion yen (J71 1 minion) worth of 
bonds to the prefecture. 

The Environmental Agency 
and die Finance Ministry are 
also involved. An official said 
the move is a government effort 
to help patioits while avoiding 
direct responsibility. 

Minamata Disease, caused bv 
the factory’s waste water and 
named after the city, appeared in 1 
the 1950s. A company spokes- 1 
man said there have been 2^50 - 
confirmed cases. The company 
pays up to i I billion yen a year. 1 

Largely as a result of the an- 1 

nual payments, the company re- ! 
ported a net loss of 10.8 billion 6 

yen for the last finandji i year. ® 


Tokyo:. . 
Nikkei 226 


Hahos^ ~ :• 

T, *yo - 


.Taipei 

[••SSTj 



SjNSg^S.r: v'.'.T 


; -Ck»e/' 

9,888.56 

SyS5L51 

a.tiRso 

^OfiSZ12 

1A9Z53 


a.ttttf.. 

1094)1,':' 

^432^2 : 


? : 7894 - 

- %• ;* . 

Ctose. „ Change 

9^Sa,08 +3.06 

~g^qs.ao. -0^7 

t . a?, 600, 42 -p.04 
^^37- +0.86 
\fiGQ2*. *2.27 . 
^5-01. +O^V t 

■ 7i04O.52 ' -0^6 
TzflQ/jLS? ■ -fO.38 

■ 607.76- +0& 

,2,141^8 ^CL40 

jJggT f ^25 

lntera »mu! Herald Trrtnme 


concern, which 
the Malaysaan government has 
put up for sale, also sard pretax 
3 1 mfflioS- 
S 1 * Irom 50.7 million ringgit 
“Thirty-five percent of the 
net income of the bank «im<- 
rrom loan recovery,” the com- 
pany said “It’s one of the 
busmea activitje® of my bmL 
and with the help of the good 


year, and Bumiputra Merchant 
Bankas Bhd, with pretax profit 
of 39.4 milHon nnea'L 


“onomy, we recovered SS 
than a fair bit of the loans.” 

The bank, Malaysia’s second- 
lmgest, said other major contrib- 
“omties arm, 
BBMB Secumies Sdru whiS 
Profit of 602 million 
mggti.ooimjared with 6 million 
nn 8g»t m the previous financial 


; pretax profit 

' °* 39.4 milHon ringgit. 

Bank Bumiputra was set up 
by the Malaysian gove rnme nt 
mainly to provide loans for in- 
digenous Malaysians, or Bumi- 
putras, wbo are mostly ethnic 
M*!®}'] 8 - The robust earnings 
jjould help the government’s 
efforts to sell the bank. Malay- 
sia had to rescue the bank twice 

m the 1980s. 

The bank was rocked by a 

scandal involving the faded 
Hong Kong-based Carrian 

gKr,% 

bilhon ringgit on bad loans. 


Lou? Ore Prices 
Sap CRA Profit 

Reuters 

MELBOURNE — CRA 

Lt(L, the giant Australian 
Btmmg concern, reported 
on Tuesday a 14 percent 
drop in first-half profit 

«“<! net profit fell to 
"7.9 million Australian 

doB«i (1244 million, from 
million a year earlier, 
the company said full- 
y «*r profit in 1994 would 
fall short of the 806.7 mil- 
lion dollars earned in 1993 

as a result of falling iron ore 

and coal prices and a strong 
Australian dollar. 


- imn -Q 25 1 

: - lw ™«wnai Herald TrrtnmT 

Very briefly; - 

"Vriy 20. 000 

du C*or plant in Malay^n^^^J* ? !0 ° “jp 00 semicon- 
aamey in Kuala Wpm-sSd^ ** state ™ Bomama news 

offer to setUe a 


claim with the UnftedSS^Sn^?^? ?“ offer to a 
^ sought 1.1 biUion^ , rt?frSn;?5 < ? als J aid - Wa ^bington 


umoa companies o 
for work on a U.S. navaj&/ 0 


and marketing of 


— — i — — wiiauaeni 

^^ Japan : s Iar B est toottoaste 
toss Of 7 bE ’ 

-sWssaracgssii 1 

• Konmtai /-i ' .... 


‘ ‘ .^OLTVCEMKvrg 


\ "M374. 

1 "°r w* LonHy or 

■SEfRIEMDK ” < ««CW IPhone 
• ^^.T r Pmorde^y l 


■ .fcMr wSs’ 01 * m 


. BEAL ESTATE 
__ FOR SALE 
I— IS RAEL 
WWWI HASHAKON. art-TT? 

^ MfWVACO "" 


INTERNATIONAL classifield 


would spend about Komatsu Ltd, said it 

5 resser Co-i based in Hlinois, still heldhJ Komatsu 

Texas, by the end of * I ° dresco ^ based in 

with Pmetd 

yeareS^tflSidKSg pr0fi - Pfojections for the 

weak Japanese economv ap , preciatJon and the still- 

pretax 6 S^ r SSTOi^ 0Wered its forecasl for 

205 billion yen from 215 billion yen° j^?**^* lo 

3 Betaerz. Bloomberg. AFP 


monte carlo 
tESSSSSSS** 


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SPORTS 


INTERNATIONAL HERALD TRIBUNE, WEDNESDAY, AUGUST 31, 1994 


Hockey Dispute 
Could Shut Down 
I raining Camps 


The Associated Press 

NEW YORK — Labor prob- 
lems are not confined to base- 
ball. The NHL is facing a threat 
that could shut down training 
camps. e 

The Dallas Morning News 
quoted an unidentified source 
Tuesday as saying that commis- 
sioner Gary Bettman will order 
a leaguewide lockout b eginning 

Monday. 

“There will be no hockey 
whatsoever without an agree- 
ment,’' the source told the 
newspaper. “[Management's] 
position is that it makes no 
sense to start, then stop and 
then start again.” 

“A strike or lockout is a dis- 
tinct possibility," said Mike 
Gartner, president of the NHL 
Players Association., “I hope 
neither one of them happens, 
but they are possibilities when 
both sides can’t come to an 
agreement 

The Toronto Maple Leafs 
forward thinks a salary cap is a 
big enough issue to force hock- 
ey into a similar circumstance 
as baseball — a work stoppage. 

“The (baseball) players are 
hanging tough and it seems the 
owners are trying to work a sal- 
ary cap that the players have 
said for months that they don't 
want,” Gartner said. “We’re 
still talking about a salary cap, 
which we don't want to have 
anything to do with, either. 
There are a lot of other prob- 
lems in the game and problems 


in the upcoming agreement that 
have to be ironed oul” 

Salaries are the main issue. 
Owners are seeking to tie salaries 
to team revenues. Players hope 
to have salaries set by the open 
market. The players’ ultimate 
goal is free agency, something 
owners have rejected in the past. 

This time, both sides hope to 
avoid the problems of two sea- 
sons ago when the players 
staged a 10-day strike, the first 
in league history. 

“We’re trying to go through 
all the different scenarios that 
can happen and we’ve been try- 
ing to set up some meetings to 
discuss what our next step is in 
getting to an agreement,” 
Gartner said. “No matter what 
happens, you still have to work 
out an agreement." 

Looming large is a series of 
sanctions that Bettman threat- 
ened to impose Thursday, when 
the Winnipeg Jets are scheduled 
to become the first team to emeu 
training camp. Bettman has 
said if a new agreement is not 
worked out by then, he will 
eliminate meal allowances, 


Lemieux Will Miss 
Next NHL Season 

New York Times Service 

NEW YORK — As expected, Mario Lemieux has an- 
nounced that he will miss the entire 1994-95 hockey season. 
The 28-year-old star center of the Pittsburgh Penguins said he 
hopes to use the rest period to recover from anemia that is a 
result of radiation treatment for Hodgkin's disease, a form of 
cancer that he battled two years ago. That illness and chronic 
back problems limited Lemieux to part-time status over the 
past two seasons. 

Although Lemieux will be paid this season under terms of 
his seven-year, 542 milli on contract, Pittsburgh fans who 
bought season tickets with the expectation of seeing him play 
can get a refund. Howard Baldwin, chairman of the team, said 
at a news conference Monday that anyone who wants his 
money back should contact him. 

Although only 28, Lemieux has been a star player for 10 
seasons, having joined the Penguins in 1984 as a first-round 
draft choice. 

“Right now, my health is a lot more important than 
hockey,” Lemieux said. "I’m going to miss going to the rink 
every day. I'm going to miss bring around the guys." 

Lemieux isn’t expected to return for the post-season play- 
offs, which begin m April, and he said he plans to make a 
decision on his future next summer. There is a possibility that 
he won’t ever return. 

“If I feel I'm not able to go out on the ice at dose to 100 
percent, another decision will have to be made,” Lemieux 
said. 


a 


E': 

The AwMiucd Pro. 

Penguins’ center will take time off for recovery. 


The Shuler Question and NFL Notes 


training camp and reduce ros- 
ters, among other things. 

“He has not rolled back a lot 
of things — he’s rolled back 
everything,” Gartner said. 

Most teams are scheduled to 
open camp this weekend, with 
the Chicago Blackhawks the 
last to get started on Sept 7. 


Hope Dims for World, Series 

Confuted by Our Sutff From Dispatches 

NEW YORK — The head of the federal mediation service has 
talked with both sides in the players' strike but has not scheduled 
another a bargaining session. And now, 20 days into the players’ 
strike, even the management negotiator, Richard Ravitcn, is 
saying there may not be a World Series in October. 

“I think the owners want to do everything humanly possible to 
save the postseason," he said Monday, “but they also want to save 
baseball for the future, and that is a very, very high priority.” 

“So far as I know, there isn’t anything going’ on,” Donald Fehr, 
the head of the union said. 

With 10 percent of the season canceled, federal mediators said 
they will meet separately Wednesday with players and owners but 
won’t call another meeting unless they think there will be progress. 

.( NYT.AP ) 


The Associated Press 

John Priesz got the call Tuesday over 
top draft choice Heath Shuler as the Wash- 
ington Redskins starting quarterback. 
Friesz was signed as a free agent during die 
off-season. 

Coach Norv Turner, in announcing that 
Friesz would start Sunday against the Se- 
attle Seahawks, cited his experience. He’s a 
four-year veteran. Turner also said he ex- 
pected Shuler to see action, as well. 

“It’s not that I think that Heath can’t 
handle it. He'd handle it fine,” Turner 
said. “I think in terms of this football 
team, and John, I just fed more comfort- 
able with John in that role, early in the 
game." Tunica: said he hasn't decided when 
Shuler will get into the game, or how much 
he playing time he'll get. 


Steve Bono, who proved himself a capa- 
ble backup to Joe Montana in 1991, will 
play that role again this season for the 
Kansas City Chiefs. Bono found out Mon- 
day he had beaten oul Matt Blundin to be 
theNo. 2 quarterback for die Chiefs. Blun- 
din will back up Bono. 

“The bottom line of it was the experi- 
ence that Steve Bono has in actual compe- 


tition,” the Kansas City coach, Marty 
Schottenheimer said. “When you look at 
Matt, one full season as a quarterback, he’s 
still in the process of thinking his way 
through this stuff. 

As Montana’s backup in 1 991, Bono led 
the San Francisco 49ers to a 5-1 record 
after Montana was sidelined. 


There is still no decision on where 
Deicm Sanders, the free agent comerback 
will play this season. 

Although Sanders said he would make 
up his mind on Monday, he didn't. The 
Miami Dolphins and at least two other 
teams have offered Sanders a contract, 
with reports putting the bidding around S3 
milli on a year. 

“I don’t know what’s going on — how 
many teams are involved, or who’s doing 
■what," the Dolphins general manager Ed- 
die Janes said. “As far as f know, be hasn’t 
decided to go anyplace." 


San Francisco received some unexpect- 
ed good news when running back Dexter 
Carter, thought to be out for the season 
with a knee injury, returned to practice. He 


expects to play in the 49ere opener i 
the Los Angeles Raiders. 

The mam physician initially believe 
Carter had tom a ligament at the end of 
kickoff return in an Aug. 18 exhibition , 
San Diego. But an additional examinatic 
showed the ligament had been stretch* 
not tom. 

Carter, a return specialist and backup j 
halfback Ricky Watters, said he wot 1 
wear a knee brace during practice. 


Tight end Ron Middleton, cut by 
Washington Redskins, found a new hoc 
The Ranis signed him as a backup 
second-year tight end Troy Drayton. Sir 
year veteran Travis McNeal was relt 
in favor of Middleton. 

Middleton. 29, is coming off the beffsj 
season of his right-year career, making 
receptions for 154 yards and two touc 
downs. 

San Diego added to its power runniu 
game by dauning Rodney Culver off wahi 
ers from the Indianapolis Colts. 

Culver, a 5-9, 224-pound fourth-row 
draft pick from Notre Dame in 199_ 
gained 471 yards and caught 37 passes n 
two seasons with the Colts. 


SCOREBOARD 


Japanese Leagues 

1 Central L«Ofli« 

W t T Pet. OB 
Vamluri 62 48 Q 564 — 

Hiroshima » a o jit 5 

Chunldil 54 55 o an 7Vi 

Honshln « Si 0 HI 8 

Yokutt so 56 o an is 

Yokohama 49 SB 0 458 tlVi 

Tuesday's R swift 
Chunldil 4. Yomluri j 
Hiroshima *, Yokohama 2 
Yaftult ». Kfcmihta 4. 10 tarings 
Pacific L eo o n e 

W L T Ft*. OB 
Solbu M S3 0 .561 — 

KlnlalW 59 *1 2 J57 Vj 


Qrhr 

DOM 

Lotto 

Nippon Ham 


57 4d 2 

SI 51 1 

45 42 1 

40 45 4 


-S53 

M\ 

JSS1 


1 

3VS 

15 

19 


Tooodav'i Results 
Lotte 1. Settni 2 
Kintetsu *. Date! 5 
Orix l Nippon Horn 1 




U.S.Open 


Men's Simles 
First Round 

Andre Auras). US. dof. Robert Eriksson. 
Sweden, fr-1 4-2. 6-fl: Markus Zotcke. Germo- 
nv.aef. Goran Ivanisevic 12), Croatia 4-2. 7-4 


44 7-5; Wavne Ferreira U2). South Africa 
doL' Wade McGuire, UA.7-5.M. 4-2; stattfo 
Rtas.Ch lie, dot. Jared Palmer. U A. 4-17-4(7- 
II. Off; Hendrik Drwfcman. Germany, del. 
Jonas Svemeoa Sweden. 4-4 44 4-2; Jim 
Grabb. U JL dot. Magnus Loreoon. Sweden, 47 
(2-71.5-7, 4-1 6-3,44; Berrta Karbacher. Ger- 
many. dof. Leander Poes. India. 4-4 6-C 0-2; 

Rdbbie welsa UX. dot. Gram Davie, Aus- 
tralia 4-4 4-1 44. 44; Ellis Ferreira, South 
Africa dot. Arnaud Boetsctk Franca 7-8 (74). 
4-4 6-4; Marc Gael (nor, Germany, dof. Brett 
Steven. New Zealand. 7-4 (7-51, 4-4 >4 6-1; 
Ronald ABonor, Haiti, del. Paul Goldstein. 
U-S, 4-4 64. 44; Maurice Ruaft Venezuela 
del. Jeremy Bates, Britain.*? (171,7-4 (7-51. 
4-4 2-4 M; Michael Chang (4). UA, del. An- 
drei Cherkasov, Russia 6-4 4-2. 4-2; Tomas 
Carbone H, Span dot. Ales Antomtscti. Aus- 
tria. 1-44-7(0-71,7-4 (9-7t.4-2.44; Ivon Lendl. 
UA.def.Nell Berwick. Austral la 7-5, *2.4-3; 
MaHVal Washington. U-SL dof. Karsten 


Brunch, Germany, *7 (5-7), 44. 3-4. *3, *3; 
Richard Fra m bn ra . Australia del. Davkt 
tMiaaton, U4L 4-4 44,4-2,3-4441 Jonfl Bar- 
illa, Spa In, dot. Kaimtn Cartoon. Den mark, 4- 
X 7-4 (7-41, *7 (Ml. 44; Andrei Oftwvsklv. 
Russia dof. Jason Stattenborv. Australia 1-4 
44 M. 4-4 4-4; serai Bruauera (21. Spain, del. 
Bryan Shettaa UX. 44. 44. 7-5; Thomas Mus- 
ter (12), Austria deL DanMe Musa 44. 4-2, * 
0; Rtehev Rcmberg, US. Hat. Boris Backer 
(71, Germany, *1,4-44-4 14, 7-4 (7-51; Ttwm- 
as EnqvlA, Sweden. Is fled with Alex Carrefla 
5POia 6-4. 3-4 4-4 7-4 (74). snip, darkness 


Rrsl Round 

Arantxa Sanchez Vlcorto (2), Seala dot, 
Undo F erro mi e. Italy, 74> 4-1; Emanueta 
Zarda Switzerland, def. Eva Morttncova, 
Czech ftOBuMc, 441 4-0; Audra Keller, U-5. 
del. Laurence Courtota. Betalum. 4-1, 4-3; 


Etana LHchovtseva Kazakhstan, def. Joe* 
otto Kruger, South Africa. 6-2. 44; Lena 
MeBkhLGeorata.dSf.AiSwfvama.J«parv4-i, 
44; Sht-Tlng Wana Tatwaadet Fang U, Chi- 
na 74, *41 

Gial Fernandez, UJL del. Sabine Hock (tj). 
Germany.4-2.74,74 (7-3) ; Asa Cartoon, Swe- 
den. dot Nancy Feber, Belgium, *4 4-T.4-2; 
Mary Pierce (4). Fnmcadef- Andrea Tom** 
varL Hunaanr,42,*2; Conch Ita Martinez (3), 
Spain, def. Veronika MarMnak, Germany. 4-1, 
44; SJhrta Farina itotv.def.Mef ton Tu.UA.7- 
5.6-7 (441,4-1; Meredith McGrath. UA. def. 
Testa PrtaJ, South Africa *1, *2; SarWrtae 
Teshrd, France, def. Elena BrlouBwvets, 
Russia 7 7-5; Gktaor Hofposaa US. del 
Korin Kschwendt, Germany, 4-2. 4-1; Natalia 
Medvedeva Ukraine, def. Barbara Sctwtt. 
Austria 44. 4-2. 74 (9-7); Radko Zrubokava 
Slovakia del Patricia TaraWnl, Argentina. * 
2.44; YoneKonUa Japan, dof. Laura Ga torso. 


Italy, 64, 6-e; Patricia Hv, Canada def. Flirts] 
•nda Latnt, Argentina 4-1, 7-4 (9-7); **' 

Korina Habsudova Slovakia def. C 
nlwe ManamL Belgium. 44 *7; Atone 
FosoL France, def. Brenda Schultz. Hem 
lands. 44,64; Etna Reinadv south Africa* 
Dinky van Renstoura Sooth Ain ca *3.24 . 1 

Mario Jaw Go Mono. Argentina def. Ang 

Leftfera. U4. t-1,7-8 (7-3 1 ; Mary Joe Fern 

dez m, UA. def. Sabine AaacJmam. Bohrt 
44,44; Anoeltco Gavaktaa Mexico, def. b 
(ina Fuk»vliMla Aroenttno. 7-s, ■»* 17 ; 
Amy Frazier 114). UJL def. Rachel MCI 
tan, Australia, 4a 44; Katarina Stadenlk 

3^44; Ltaa Raymond, U*. del. Come ( 
ntngltam, UJL.7-6 1741,44; Naltiaile T« 

^ WfPhonta Rattler, Nether kn 
7^24.7-51 1 voMololl, Croatia def. Naolle 1 
Lotlum, France, *1.2^1. retired; Isabelle J 
mangeot. Franca del. Lea Ghlrardl. Fr 
M 6-1 


Returns to Wflliams-Re^ 

X)N CAP)'— Former worid champion tea ^ : 

Formula One raring with the Wilhams-Re ... 

«5t three races of this season. vUrttiiihevear’j 

tms : «aid Tuesday that Mansell would finish ou 

Frii circuit after completing his c ^ D 5 lJ ^^ S anse !! 5 
a-Ha^ lady-car team in the United States. * ^ 

[European Grand Prix at Jerez in Spam * JS* 
p.aiSuzoka on Nov. 6 and the Australian in Adelaide one 

er, .■/. .- ■ .. .;■■■■ 

:m Classic Victory for Ohio State 

TO, California (LAT) — Ohio State had neariyevery-’ 
fowi way against Fresno Slate in the Disnevtol^^kin 
kt Anaheim Stadium on Monday night, ove^J he 8 ( 
liMing after the loss of 1 1 players to the N rL- , 

esno State offense was inconsistent, and the derate was _ 

J for Joey Galloway, a wide receiver with an AR-Amcn- . 
^-The reajlt was a 34-10 Ohio State victory- • 

Drops Out of Swiss Open Golf 

k)N (Reuters) —John Daly is out of this week’s Europe-; 

(s in Switzerland after injuring his bade m ascutne at ine_ 
e Worid Series of Golf in Ohio on Sunday. The Amencan. 
ht up in a scuffle with the father of another play®^ . 
k im of hitting before it was safe to do so during theunal, 
te two fell to the ground and had to be separated by* 
prs and caddies. . . « 

I returned from a four-month ban earlier this year, having- 
[out of a tourtament in Hawaii. 

nda State Flayers Suspended 

lAHASSEE, Florida (AP) —Defending national charapi- ; 
Hda State will open the 1994 season Saturday against, 
i without five players who are suspended for taking illcga^ , 
on nrosoecdve agents in November. 


R ensioo. AD-American linebacker Dernck ■ 

: Tiger McMilkm were eariier suspended for | 

, atit! offensive guard Patrick McNeil for three games. • 

Weighllifter Disqualified 

JRIA, British Columbia (Reuters) — A Canadian; 
_ter tested positive at the Commonwealth Games for a, 
L dreg and was ordered to gjve up three bronze medals he • 
r the host country, games organizers said. ; 

Dan Corbett, who competed in 83 kilogram weightlifting. 
| was the first athlete from Pmwri* and the seventh games' ; 
I to be banned in the 10-day sports festival. 1 

I the Record 

[Povttand Trafl Blazers have re-signed center Chris Dudley! 
w contract- The NBA has 10 days after receiving the; 
l to decide whether to contest its validity as a violation of! 
ry cap. (AP)^ 

new Sooth African ragby coach, Kitch Christie, has dis-! 

f l 17 players who toured New Zealand last month from his 
of 36 to prepare for the home series against Argentina and a 
Scotland and Wales. (AFPJ 

rtable r 

yor John figngffi of the steelmaking town of Donora. Penn- 
-‘a, dedicating two baseball fields after Stan Musial and Ken 
Sr^ its two most famous sons: “With Stan Musial, Ken 
>y Sr. and Ken Griffey Jr„ I believe we have produced three 
s best players who have ever played die game of basebdl. ^ 

. (Ar) 

_ - •*. 


BASKETBALL' 

M MtaiMl BoMnlbatt Aa notation 
CLEVELAND— flo-stanM Tvrooo H1IL fur- 
ward. ta muttfyaar contract. 
MINNEAPOLIS— ttanwd BUI Blair coadv 

PORTLAND— Reitanart Qirta Dudtar. 


v 






;.-V*! ft 

a - : 


HUSH PREMIER LEAGUE 
Ntawtmrs Rasali 
1 OTv 8. Alton void 1 
i: N*wcntlff9potnt»Blacktauni7. 

■ united 7, Notitagntmi Femt 7, 

l 4. Mandwater City A CtMtnd t, 

a 6. Aston Vdta A Imrtdi 4. LMdi A 

(LShofnaW WvdneKkry XAmnal 3. 

i Rmora3,Whnbladan2,te»ttv 

!. Crystal Palaot2,WHt Ham i, Ewr- 

L Ldontar 0 


BASEBALL 


IRK R oca tte d Jou Aiaanfa PlWe 
CMumbUk IL. 


FOOTBALL 

Naftanol FoartMU LeagM 
BUFFALO— Stgnod Fllnwl JuhnaoaitetafK 

livaback; Jam OnmkX,afteii9tv« (kwman;* 

TVn Tlndato, nmnlno back; Damon Tnomm; 

takte raatlvw; and Grog Evura, dtfonslva 

back to rtw practice sauad. 

CINCINNATI — tea Ned Jav Schrasder; 

wartervock; LaitCB Gunn, ntaty; and Scott 

BrumftoM o l lw il w ttnamaa Ctalmgd Jeft 

Stale*, quartet back, oft watvtr* tram Nmr- 

YarkJata; noaarJanM,canMrtaKk.on«Hitv- 

■ra tram Tampa Bov ; and Matt Jav ’ I 

■I go tackla off wotvors from i mxn, 

| NUt 
r .jnm, 



For 

investment 

information 

Read 

rhe MONEY REPORT 
every Saturday 
in the IHT